Jumbo Green Deal Wakes Up ESG Market

The green bond market is roaring back to life with the biggest-ever corporate sale, pulling in investors starved of ethical debt during this year’s market turmoil.

Dutch power company TenneT Holding BV sold 3.85 billion euros ($4.06 billion) of green debt across four maturities Tuesday, to fund greener electricity grids across Europe. It’s the largest deal for the environmental debt from a company, topping previous efforts from Honda Motor Co. and Engie SA, according to data compiled by Bloomberg.

“This is a company that is at the heart of the energy transition in Europe,” said Arthur Krebbers, NatWest Markets Plc’s head of corporate climate & ESG capital markets. “It is amongst the players helping the German and Dutch economy transition to green, which has never been more topical.”

Investors jumped on the sale, placing more than 8 billion euros of bids, after a dearth of green corporate issuance in Europe following Russia’s invasion of Ukraine. Sales in the region through April are 23% down on last year, as issuers step back from raising new debt amid ongoing bouts of global volatility.