Dutch-German transmission system operator TenneT has launched a €1.25bn ($1.39bn) green bond, split into two €500m and one €750m tranches, to finance large-scale links to connect offshore wind projects in the Netherlands and Germany to the onshore grid.

The bond issuance was several times oversubscribed, with investors putting in orders of more than €5bn, showing a healthy appetite for green financing.

Over the next ten years TenneT expects to invest €35bn in offshore and onshore grid connections across the Netherlands and Germany.

The TSO said that some 80% of its investments are related to renewables, such as wind and solar energy. In the period up to 2030, TenneT expects to have built about 25GW of connection capacity for offshore wind farms in the Dutch and German parts of the North Sea, transmitting electricity sufficient to power 31 million households for a full year.

The 11-year bond has a coupon of 0.875% for the €500m tranches, and of 1.5% for the €750m tranche.

The issuance has the support of ABN AMRO, Barclays, HSBC, NatWest Markets and SMBC Nikko.