Gasunie successfully issues its inaugural Sustainability-Linked Bond

N.V. Nederlandse Gasunie has successfully issued its inaugural Sustainability-Linked Bond (SLB). The issue amounts to €300 million with a tenor of 15 years, maturing on October 13, 2036. Gasunie is the first company in the European gas transmission sector to issue a SLB.

The bond was issued in accordance with Gasunie’s recently published Sustainability-Linked Bond Framework (the Framework), which follows the ICMA Sustainability-Linked Bond Principles. The Second Party Opinion provider ISS-ESG considers the Sustainability Performance Targets (SPTs) of Gasunie ambitious against its performance and sectoral peer group.

Having established a credit facility in 2020 with sustainability targets, the adoption of a SLB framework is part of Gasunie’s efforts to broaden its ESG (Environmental, Social and Governance) financing sources. The Bond Framework and Second Party Opinion can be found on the Gasunie website.

Han Fennema, Chief Executive Officer of Gasunie: ”We are transforming from a gas transmission company into an energy infrastructure company. Against this background, we now launch this Sustainability-Linked Bond in line with our Vision 2030, clearly communicate our transition strategy and partner with our investors in delivering this strategy. We attach tangible economic incentives to achieve specific sustainability outcomes throughout our transition and decarbonisation process.”

For this bond, Gasunie selected two targets to be achieved by December 31, 2030. The first target is quite distinct to the gas transmission sector, stating that methane emissions should reduce by approximately 75% compared to 1990 and 50% to 2020; clearly exceeding the target of 30% recently published as part of the Global Methane Pledge. The second target relates to CO₂-equivalent emissions under Gasunie’s own control, which it must reduce by 30% by 2030, based on a relative value benchmark.

The bond carries an effective interest rate of 0.763%. The sustainability-linked feature might result in a coupon increase of 0.10% if Gasunie has not achieved one target, and 0.20% if Gasunie has not achieved both targets on December 31, 2030. The bond will be listed on Euronext Amsterdam. The proceeds will be used to refinance existing debt maturities and general corporate purposes.

Janneke Hermes, Chief Financial Officer of Gasunie: “Gasunie's total investment agenda for the coming ten years, captured in our Vision 2030, could amount to around € 7 billion. More than half of these investments will support the energy transition. We will shortly be taking the final investment decisions for the first projects. I am very happy with the investors who have shown so much interest in making this transaction a success and see it as a sign of confidence in our financing strategy.”