This investment strengthens TenneT Germany’s financial position as the owner of strategic infrastructure in Germany. This transaction follows up on the previously announced €9.5bn equity commitment from the three large institutional investors, APG, GIC, and NBIM.

“The German state is one of TenneT’s most important stakeholders in Germany. This co-shareholding creates valuable additional involvement, with particular attention to the increasing investment agenda and the new geopolitical reality,” said Manon van Beek, CEO of Tennet.

TenneT Holding will retain at least 28.9% of the shares in TenneT Germany. This gives TenneT Holding full participation in all important decisions. The collaboration between TenneT Netherlands and TenneT Germany will largely remain in place, as both companies are jointly developing infrastructure to connect North Sea wind farms to the European electricity grid.

The direct purchase of shares by KfW will enable TenneT to repay approximately €3.3bn of a shareholders’ loan from the Dutch state.

Completion of the transaction is subject to customary conditions, including regulatory approval, and is expected to take place at the end of the first half of 2026.

The expected equity value after the initial capital contributions by the three institutional investors is approximately €13.3bn ($15.7bn) at the time of transaction closing.

The German state will participate in subsequent capital contributions by the three institutional investors to meet TenneT Germany’s equity requirements over time and maintain its 25.1% stake. The three institutional investors are expected to acquire a 46% stake in TenneT Germany over time, and TenneT Holding is expected to dilute to a 28.9% stake.