NBIM, GIC and APG Invests $11.16 Billion in TenneT
Three of the world’s largest institutional investors including two sovereign wealth funds, are set to acquire 46% stake in European grid operator TenneT Holding, funding the expansion of Germany’s high voltage grid, amounting to an investment of $11.16 billion over the next four years.
TenneT Germany owns about half of the German high-voltage electricity grid and 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.
Announcing that it has reached an agreement with APG (investing on behalf of Dutch pension fund ABP), Singapore sovereign wealth fund GIC and Norway’s Norges Bank Investment Management (NBIM), TenneT Holding CEO Manon van Beek said that they were pleased to have achieved a structural solution for TenneT Germany’s equity need.
APG alone is set to acquire an 11% stake as part of a wider bid to commit €10bn to the energy transition by 2030 and the transaction is expected to take place, subject to customary conditions including regulatory clearances, in the first half of 2026.
According to Manon van Beek, TenneT remains Europe’s leading cross-border TSO, a key player in system integration, offshore wind connections and market innovation with this financing solution.
This announcement also marks the end of an intense period during which they have separated their Dutch and German operations within the group, implemented a new funding structure for TenneT Netherlands and secured equity funding for TenneT Germany, Manon said.
“I am proud of all my colleagues and our close collaboration with the Dutch Ministry of Finance throughout the process. We will continue our full focus on securing access to reliable, sustainable and affordable electricity supply,” Manon added.
Some of the key terms of the contemplated transaction includes a primary equity commitment by the incoming investors of up to $11.16 billion in aggregate, to be contributed partly at initial close and partly in the years thereafter; an enterprise value of TenneT Germany of approximately $46.98 billion on a cash and debt free basis, and a pre-money equity value of $12.12 billion as of 31 December 2025; expected post-money ownership stakes of TenneT Holding of approximately 54%, and investing parties 46%; and strong commitment towards a robust investment grade financial policy, optimally positioning TenneT Germany to raise the required debt financing for its CAPEX programme as well.
The transaction with these partners will deepen European integration in the energy market and strengthen Dutch, German and European economies.
Cooperation Continues
TenneT Netherlands and TenneT Germany will continue to cooperate on strategic areas, such as the 2GW programme, designed to roll-out the offshore grid, thereby preserving mutually beneficial synergies.
The contemplated transaction is the result of a thorough assessment of TenneT and the Dutch state as TenneT’s sole shareholder. TenneT and the Ministry of Finance have jointly concluded that a private placement of shares is the best solution.
Ronald Wuijster, CEO APG Asset Management, said that 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 said.
