Financial strategy

TenneT balances the objectives of generating a return on invested capital at least equal to the regulated return while maintaining a financial profile consistent with an ‘A’ rating. TenneT has a conservative financial policy aimed at mitigating financial risks. 

The principal financial objectives are:

• Generate a return on invested capital at least equal to the regulated return
  In order to achieve this objective TenneT aims to (1) create and maintain a capital structure which enables TenneT to achieve an optimal cost of capital, and (2) provide the shareholder with a reasonable return on its investment in line with the risk profile of TenneT.
  
  
• Protect shareholder capital and operating results against financial risk
  TenneT's policy is to maintain sufficient liquidity to its meet short-term obligations at all times. In addition, it is TenneT's policy to maintain solvency levels which enables it to absorb unexpected losses. This requires the availability of sufficient equity capital. In order to limit refinancing risk, TenneT aims to diversify maturities of financing instruments. If and when appropriate, TenneT hedges financial risks, such as interest rate risk, through appropriate hedging arrangements.
  
  
• Obtain and maintain access to financial markets at  favourable conditions
  TenneT targets a credit profile in line with an “A” category rating profile in order to secure good access to a wide range of financial markets. TenneT aims to diversify sources of funding.