International investors set to acquire 46% stake in German grid infrastructure

Three of the world’s largest institutional investors are set to acquire a significant minority stake in European grid operator TenneT, funding the expansion of Germany’s high voltage grid.

Dutch pension investor APG alongside Singaporean sovereign wealth fund GIC and Norges Bank Investment Management (NBIM) are set to acquire a 46% stake of TenneT Germany, amounting to an investment of €9.5bn over the next four years.

TenneT Germany owns about half of the German high-voltage electricity grid. It is part of TenneT Holding, which is owned by the Dutch state. The Dutch cabinet decided last year to invite major investors to back the firm, in a bid to fund the expansion and modernisation of German grid infrastructure.

APG alone is set to acquire an 11% stake as part of a wider bid to commit €10bn to the energy transition by 2030.

Ronald Wuijster, CEO APG Asset Management commented on the deal: “This investment serves multiple strategic goals. By acquiring a stake in TenneT Germany - a stable, regulated infrastructure asset in an AAA-rated country - we secure a relatively low-risk investment with stable, long-term cash flows for our client ABP and our partners. Additionally, it is an impact investment that supports Sustainable Development Goal 7 (Affordable and Clean Energy) and strengthens Europe’s infrastructure autonomy” he explained.