The Netherlands Ministry of Finance has decided to provide a state guarantee to TenneT Nederland, enabling the high-voltage grid operator to fund continued investment in the Dutch electricity network through borrowing at the Dutch state’s AAA credit rating. In parallel, the government is pursuing a private-capital solution for TenneT Germany, with an initial public offering or a private share issuance under consideration. TenneT Netherlands is expected to invest around EUR 90 billion over the next ten years, and the guarantee is intended to secure cheaper market funding without additional state capital injections. The package also changes TenneT’s financing model by moving from group-level borrowing via TenneT Holding to separate debt issuance by TenneT Netherlands and TenneT Germany; existing bondholders will be asked to consent to transferring the debt to TenneT Netherlands in exchange for a one-off compensation. If investor interest in TenneT Germany is insufficient or the debt transfer cannot be completed, the Dutch state would provide the capital needed by TenneT Germany, with a reservation included in the national budget. The intention to provide the guarantee is incorporated in the Spring Budget 2025 for submission to Parliament. Investor soundings for TenneT Germany are planned in the coming months, with a decision expected before the summer on which private-funding option to pursue.

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