Sources indicate that the world’s largest sovereign wealth fund is considering a multi-billion-dollar investment in Germany’s electricity grid. According to information obtained by the German business publication “Handelsblatt”, Norges Bank Investment Management, the division of the Norwegian Central Bank responsible for managing the Government Pension Fund Global (GPFG), is part of a group of potential investors exploring a capital increase for Tennet Deutschland, a major electricity transmission network operator.
Multiple sources familiar with the proceedings have confirmed the interest. Neither Tennet nor Norges Bank Investment Management have provided comment when approached for confirmation.
The Dutch government, as the majority owner of Tennet, is expected to decide on the method for raising the new capital in September. Financial circles suggest Norges could serve as an anchor investor should the capital increase proceed via a stock market listing. Alternatively, the fund may acquire a minority stake alongside the Dutch pension fund APG in a private placement scenario. Industry specialists at Infralogic have also reported on the potential involvement of the Norges and APG consortium.
