TenneT: 3D glasses needed

Research evidence excerpt

TenneT: 3D glasses needed

Barclays | European Utilities

grid reinforcement and alleviating network congestion. The investment programme is

expected to support material growth in regulated assets and earnings over the coming

decade.

• Funding requirements, debt trajectory and financial policy: TenneT Netherlands is

expected to fund its €48bn investment programme primarily through government-

guaranteed debt issuance, with annual funding requirements of around €6-8bn. S&P

forecasts adjusted debt to increase to c.€61bn by 2028, reflecting annual negative

discretionary cash flow of €7-8bn during the peak investment period. Despite the materially

higher leverage, both S&P and Moody's view the sovereign support framework as a key credit

strength, supporting current ratings and stable outlooks through the investment cycle.

• Funding requirements and debt trajectory: TenneT Netherlands is the exclusive debt

issuing platform for Dutch operations and funds its investment programme primarily through

government-guaranteed debt. The company also holds the large inter-company loan to

TenneT Germany, which S&P expects to increase to c.€28bn by year-end 2026, with principal

repayments and dividend inflows from Germany expected to commence from 2030. We view

the combination of sovereign-backed funding access and future cash inflows from Germany

as important sources of long-term financial flexibility.

• Liquidity and financial flexibility: Liquidity is supported by c.€3.6bn of unrestricted cash as

of end-Q1 26, a €3.3bn committed revolving credit facility, established access to debt capital

markets. Future inter-company loan repayments and dividend inflows from TenneT Germany

from 2030 provide additional balance sheet support.