Latest news with #EelcoHeinen
Yahoo
16-05-2025
- Business
- Yahoo
Dutch grid operator TenneT negotiates sale of minority stake in German unit
State-owned Dutch power grid operator TenneT has reportedly initiated discussions with potential investors regarding the sale of a minority stake in its German division, Reuters has reported. The move could lead to one of the largest European transactions of 2025. The German unit, with a regulated asset base of €27.8bn ($31.1bn) as of 2024, expects 25% annual growth through to 2029. A sale could potentially raise up to €12bn, though the final amount will depend on the stake size and debt level. The Dutch state has pledged to maintain a BBB-rated capital structure for TenneT Germany, aligning with other German high-voltage grid operators. Non-binding bids for TenneT Germany are anticipated by mid-June 2025. The development comes amidst a challenging deal-making environment due to the US trade war. Regulated grid assets such as TenneT Germany, offering fixed returns, are deemed attractive investments in the current economic climate of falling interest rates and uncertainty. Funds such as Apollo Global Management, Canada's Caisse de depot et placement du Quebec and Macquarie have shown interest, with BlackRock's Global Infrastructure Partners and CPP Investment Board also expected to consider the opportunity. The potential deal's size may encourage collaboration among interested parties, although there is no certainty of a transaction. All mentioned funds have refrained from commenting. After a failed partial sale to KfW in 2024, the Dutch government is considering both a sale and a partial initial public offering for TenneT Germany. Dutch Finance Minister Eelco Heinen has expressed his intention to decide on the best course of action by early July, following investor discussions and non-binding bids. TenneT Germany, with more than 14,000km of high-voltage power network, reported earnings before interest, taxation, depreciation and amortisation of €2.2bn in 2024. In April 2025, TenneT announced a significant restructuring to financially separate its Dutch and German operations, ensuring a solid foundation for both entities. This involves transferring the company's senior debt from the holding level to TenneT Netherlands. "Dutch grid operator TenneT negotiates sale of minority stake in German unit" was originally created and published by Power Technology, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
Mint
24-04-2025
- Business
- Mint
Dutch to Seek ‘Solution' to Bank Bonus Cap for Some Staff
(Bloomberg) -- The Dutch Finance Ministry said it's going to look at whether it can tweak the country's bonus restriction for parts of the financial sector while leaving it in place for banks' top brass. 'I will not amend the bonus rules for directors in the financial sector, such as top bankers,' Finance Minister Eelco Heinen said in a letter published on Thursday. But 'I want to see whether a suitable solution is possible for specialist staff of financial companies.' The finance ministry had been considering easing parts of the country's limits on variable pay, Bloomberg News reported earlier this year. That move could be designed to support banks by focusing on some staff, while seeking to mitigate the risk of a public backlash by excluding senior executives, people familiar with the matter said at the time. Any softening of the Dutch bonus cap would be the first time the government makes changes favored by banks since introducing some of the regulation a decade ago. The Dutch cap is far more stringent than restrictions on variable pay applying throughout the rest of the European Union. The country's banks including ABN Amro Bank NV and ING Groep NV have long cited the rules as a substantial hiring impediment, highlighting IT recruitment as a particular challenge. ABN Amro recently put in place a hiring freeze to keep a lid on costs, Bloomberg News has reported. The Netherlands put the bonus caps in place in the wake of the 2008 financial crisis that resulted in huge bank bailouts costing the country tens of billions of euros. Top management of banks in which the state owns a stake were banned from receiving any variable pay, and a bonus cap at 20% of fixed salary was subsequently implemented across the rest of the industry. Heinen said that the financial sector is facing new challenges, such as cyber resilience. 'These new security issues are a focus for financial institutions and that requires additional capacity. This makes the availability of employees with specialist knowledge and experience, such as IT specialists, essential,' he said. He said that an evaluation showed that companies have to search longer for suitable personnel or have to weaken job requirements as they also compete with big technology companies to which the remuneration rules do not apply. Heinen also said that financial companies have often increased their fixed wages to remain competitive, leading to less cost flexibility in times of economic downturn. That can particularly pose obstacles for fintechs, he wrote in the letter. --With assistance from Patrick Van Oosterom. (Updates with context in sixth paragraph.) More stories like this are available on First Published: 24 Apr 2025, 01:42 PM IST
Mint
24-04-2025
- Business
- Mint
Dutch Ministry to See if Bank Bonus Cap Can Be Partly Lifted
(Bloomberg) -- The Dutch Finance Ministry said it's going to look at whether it can loosen the country's bonus restriction for parts of the financial sector while leaving it in place for banks' top brass. 'I will not amend the bonus rules for directors in the financial sector, such as top bankers,' Finance Minister Eelco Heinen said in a letter published on Thursday. But 'I want to see whether a suitable solution is possible for specialist staff of financial companies.' The finance ministry had been considering easing parts of the country's limits on variable pay, Bloomberg News reported earlier this year. That move could be designed to support banks by focusing on some staff, while seeking to mitigate the risk of a public backlash by excluding senior executives, people familiar with the matter said at the time. Any softening of the Dutch bonus cap would be the first time the government makes changes favored by banks since introducing some of the regulation a decade ago. The Dutch cap is far more stringent than restrictions on variable pay applying throughout the rest of the European Union. The country's banks including ABN Amro Bank NV and ING Groep NV have long cited the rules as a substantial hiring impediment, highlighting IT recruitment as a particular challenge. The Netherlands put the bonus caps in place in the wake of the 2008 financial crisis that resulted in huge bank bailouts costing the country tens of billions of euros. Top management of banks in which the state owns a stake were banned from receiving any variable pay, and a bonus cap at 20% of fixed salary was subsequently implemented across the rest of the industry. Heinen said that the financial sector is facing new challenges, such as cyber resilience. 'These new security issues are a focus for financial institutions and that requires additional capacity. This makes the availability of employees with specialist knowledge and experience, such as IT specialists, essential,' he said. He said that an evaluation showed that companies have to search longer for suitable personnel or have to weaken job requirements as they also compete with big technology companies to which the remuneration rules do not apply. Heinen also said that financial companies have often increased their fixed wages to remain competitive, leading to less cost flexibility in times of economic downturn. That can particularly pose obstacles for fintechs, he wrote in the letter. --With assistance from Patrick Van Oosterom. (Updates with details from letter from eighth paragraph.) More stories like this are available on First Published: 24 Apr 2025, 01:42 PM IST
Yahoo
21-04-2025
- Business
- Yahoo
TenneT announces new funding structure for Dutch and German operations
TenneT has announced a significant restructuring of its funding to facilitate the separation of its Dutch and German operations into two independently operating and financed entities. This move is aimed at addressing the equity needs of its German operations and ensuring a robust financial foundation for both companies. The proposed new funding structure will involve transferring TenneT's existing senior debt from the holding level to TenneT Netherlands. This strategic shift is designed to safeguard the interests of senior debt holders and prevent structural subordination due to anticipated new debt at the operational levels of TenneT Netherlands and TenneT Germany. TenneT CFO Arina Freitag said: "Today is an important step towards the formation of two separately financed national TSOs under the umbrella of TenneT Holding, in line with TenneT's strategic objectives. With this new financing structure, we can continue to ensure a safe and reliable electricity supply in the Netherlands and Germany." To support this transition, TenneT Netherlands is poised to receive a state guarantee from the Netherlands, covering its payment obligations under both current and future debt financing. This includes debt involved in the planned transfer, with certain exceptions. The guarantee is also expected to include a keep-well obligation, although it is still pending approval from the Dutch parliament. Once approved, the state guarantee is anticipated to bring TenneT Netherlands' senior debt credit risk in line with that of the Dutch state itself. Dutch Minister of Finance Eelco Heinen said: "We are confident that the new funding structure, supported by the state guarantee, will provide TenneT Netherlands with a strong financial basis to continue to invest in the Dutch electricity grid, and at the same time enable separate funding of TenneT Germany.' In a separate development, TenneT has also launched an initiative to offer over 9GW of capacity on its high-voltage grid to high-energy users during off-peak hours. "TenneT announces new funding structure for Dutch and German operations" was originally created and published by Power Technology, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
Reuters
17-04-2025
- Business
- Reuters
Power grid group TenneT realigns funding structure for business split
AMSTERDAM, April 17 (Reuters) - Dutch state-owned power grid company TenneT will realign its funding structure to facilitate the separation of its Dutch and German activities, with a state guarantee on loans needed for investments in the Netherlands, it said on Thursday. The corporate reorganisation will enable it to raise debt for the Dutch and German businesses through two different entities, it said. TenneT decided in December to separate the businesses in order to facilitate growth and a potential sale of the German arm. The Dutch state will provide TenneT Netherlands with a guarantee on the loans for the estimated 90 billion euros ($102 billion) in investments it needs in the next 10 years, Dutch Finance minister Eelco Heinen said. That will lift TenneT Netherlands' credit rating to match the triple-A rating of the Dutch state, providing it with cheaper financing options, he added. "We are confident that the new funding structure, supported by the state guarantee, will provide TenneT Netherlands with a strong financial basis to continue to invest in the Dutch electricity grid, and at the same time enable separate funding of TenneT Germany," Heinen said. TenneT last month invited parties interested in taking a stake in its German operations to come forward, as it was raising fresh equity to support an estimated 200 billion euro investment programme through 2034 and has indicated it could sell all of its German operations. It said it remained open to the German state taking a stake in TenneT, after talks for Berlin to buy the German operations from the Netherlands collapsed last year due to budget constraints. TenneT expects to effectuate the debt transfer for the new financial structure by October 2025, after having received consent from senior debt holders. ($1 = 0.8803 euros)
