MUFG Trades $500 Million of TenneT’s Bonds in July (1)

MUFG Securities executed over $500 million of trades in TenneT Holding BV’s bonds in July, marking a flurry of interest in the Dutch electricity firm after the government approved a debt guarantee.

“We see strong scope for TenneT bonds to outperform,” said Chris Orr, head of credit trading for MUFG’s Europe, Middle East and Africa division. He added that there’s potential for the debt to trade at a tighter spread premium compared with AAA-rated sovereign, supranational and agency debt lacking a state guarantee.

TenneT, which operates electricity grids in the Netherlands and in Germany, has benefited in recent weeks ...