(Bloomberg) -- The Dutch government will lend state-owned grid operator Tennet Holding BV another €19 billion ($21.1 billion) for its capital requirements after talks with Berlin over a sale of its German network failed.
Until structural solutions are in place, the Dutch state is providing Tennet with a “supplementary bridging loan” of €2 billion for 2025 and €17 billion for 2026, it said in a statement published on Tuesday.
The financing comes on top of the €25 billion loan it provided in January for its much needed grid investments this year and in 2025.
The new loan is needed to meet increasing demand for electricity from households and companies, the Dutch government said during its Budget Day, known as Prinsjesdag.
The Netherlands and Germany were in talks for more than a year to work out a sale of Tennet’s German power grid before discussions collapsed in June. The cost proved too much for Berlin’s stretched finances, and since then there have been efforts to find alternative investors for the network.
“Participation in Tennet Germany by private investors is currently seen as the best way of structurally solving” its capital requirements, Dutch Finance Minister Eelco Heinen and Climate Minister Sophie Hermans said in a letter to parliament.
“This could be done through the private sale of shares or flotation,” they said. “These options will be discussed in the months ahead.”
Tennet has already invited investment banks to pitch for roles on a potential initial public offering of the German operations, people familiar with the matter told Bloomberg News last week. The company has also held talks with a range of pension funds and infrastructure investors, including from Canada and Australia, about the possibility of selling a stake in the business, the people said.
©2024 Bloomberg L.P.
