Stockholm (NordSIP) – TDC NET, one of Denmark’s leading telecommunication network operators, issued a €500 million 8-year sustainability-linked bond on October 15th. All of TDC NEt’s SLBs are tied to two Sustainability Performance Targets (SPTs), linked to reductions in Scope 1 and 2 (SPT1) and Scope 3 emissions (SPT2). TDC NET’s outstanding Senior Secured bonds are rated BBB- by Fitch. This transaction attracted more demand for a TDC NET bond than ever before.
TDC NET serves 2.8 million addresses through its copper network and connects more than 1.5 million addresses with coax or fibre. TDC NET reportedly made DKK577 million in profits before taxes from DKK 6.45 billion in revenues. In May 2025, Australian asset manager Macquarie AM purchased TDC NET’s shares from Danish pension funds ATP, PFA and PKA, bringing their total stake in TDC NET to 100%.
The Market To Itself
Ahead of TDC NET coming to the market, conditions were perceived as weak due to US-China tensions, but over 40 investors joined small group calls and were very supportive of the deal. As the sole issuer in the euro corporate primary market on Wednesday, TDC NET had all the attention to itself.
The bond matures in 2033, pays a 4.625% fixed rate coupon and was priced at a 99.751 discount, 220 basis points (bps) over mid-swaps (MS), down from initial price thoughts (IPTs) of MS+255-260bps. As an SLB, TDC NET’s bond is subject to coupon step-ups worth a cumulative 75 bps. Geographically, UK investors dominated, with over 50% of total allocations secured, while Germany, France, and the Nordic region each secured around 10% of allocations. Final orders closed at €3.75 billion, a record for the issuer. The SLB issuance was managed by Barclays, BNP Paribas, Danske Bank, ING, Helaba, SEB, Goldman Sachs and NatWest.
”The 2025 volume of Euro SLBs is at a third of its 2021 peak. While volumes have decreased, the level of ambition has significantly increased. Back in 2021, we simply didn’t have the same quality of data, such as on Scope 3 emissions, as we do today. TDC Net utilises its Science Based Target initiative (SBTi) approved and verified targets for its SLB issuance and, as highlighted in their framework, even goes beyond the 1.5-degree scenario. Investors recognised TDC Net’s ambitious structure, resulting in the largest book ever on a EUR transaction for them,” Lars Mac Key, Head of Sustainable Products at Danske Bank tells NordSIP on this occasion.
Sustainable Targets
TDC NET’s SLBs are tied to the company achieving two SPTs. SPT1 requires the company to achieve 100% reduction in Scope 1 & 2 CO2 emissions by 2028. SPT2 requires a 55% reduction in Scope 3 CO2 emissions by 2029. Both targets are calculated vis-à-vis a 2020 baseline.
According to TDC NET’s 2024 Annual Report, Scope 1, 2 and 3 CO2 emissions decreased by 10% compared to 2023 and by 49% compared to 2020. The report further states that Scopes 1 and 2 were down by 61% compared to 2020, while Scope 3 emission were down by 41% reduction compared to 2020.
According to the Anthropocene Fixed Income Institute (AFII), there was some evidence from pricing that “the market considers the Scope 3 2029 target as least likely to be achieved.”
“AFII’s observations are relevant. In general, the further out you go, the predictability becomes more uncertain and more unknowns emerge. For TDC Net, they target to achieve an additional 15% reduction in Scope 3 emissions (from the 2020 baseline) in the final year of their 2029 target. It is very understandable that the market deems this target as highly ambitious,” Danske Bank’s Mac Key concludes.
