VNG places new promissory note
Leipzig-based VNG AG has again successfully placed a promissory note totalling EUR 100 million on the capital market, thereby reinforcing its financial strength. VNG was able to place the desired volume on the highly competitive capital market at an attractive price. The loan consists of five tranches with terms of between three and seven years and was arranged by Bayerische Landesbank and Landesbank Baden-Württemberg.
Bodo Rodestock, Chief Financial and Human Resources Officer of VNG AG, comments: “We are delighted that we were able to successfully place the promissory note, thus systematically expanding our mix of financial instruments. The move lays another building block in our plans to finance upcoming investments in the green transformation. Our investments are mainly focused on infrastructure, in particular the future hydrogen infrastructure and projects with green gases – predominantly in our home region. We will continue to invest heavily in Eastern Germany in the coming years. We are planning to spend at least 200 to 300 million euros on these projects annually.”
VNG closed the year 2023 with a consolidated net profit of 380 million euros. This positive earnings trend contributes significantly to the company’s ability to finance investments largely from its own resources and serves as a basis for long-term investment decisions. By placing the promissory note, VNG has opted for a long-term and flexible financial instrument to further diversify its sources of financing.
VNG is a group of over 20 companies active in the European energy industry, employing about 1,900 people. As a gas importer and wholesaler as well as an operator of critical gas infrastructure, the Group, which is headquartered in Leipzig, is central to the secure supply of gas in Germany. With the “VNG 2030+” strategy, VNG is also pursuing an ambitious path for a market ramp-up of renewable and decarbonised gases such as biogas and hydrogen, paving the way for a sustainable, secure supply and, in the long term, climate-neutral energy system of the future.
Press picture
Headquarter of VNG in Leipzig (picture: Torsten Pross)
