TenneT is a regulated transmission system operator with very large infrastructure capex needs and long-lived assets, so some hybrid capital can be useful: it supports credit metrics while avoiding full common-equity dilution and can help fund the energy-transition investment program.

However, the 2022 position argues against a very high reliance on hybrid bonds:

- Existing hybrid capital is already material: EUR 2.125bn versus total equity of EUR 7.713bn, about 28% of reported equity.
- Debt is much larger: long-term borrowings rose to EUR 19.006bn, and total liabilities are EUR 30.796bn versus equity of EUR 7.713bn, so leverage is already high.
- Profitability was weak in 2022: net loss of EUR 879m and operating loss of EUR 976m. This reduces tolerance for expensive discretionary coupon instruments.
- Rates and credit spreads increased sharply in 2022. The 5Y/7Y/10Y swap curves moved from near-zero/negative levels in 2021 to around 1.7%–1.9% in 2022, and subordinated/hybrid-style spreads are materially higher than senior IG spreads. New hybrid issuance would therefore be more costly.
- The company has strong state ownership and regulated asset characteristics, which support access to senior debt and shareholder capital. Indeed, it received EUR 1.23bn of capital contributions in 2022, reducing the need to rely heavily on hybrids.
- A moderate hybrid share can preserve rating equity credit and financial flexibility, but excessive reliance would increase refinancing/coupon risk and could be costly under the 2022 market environment.

Given these factors, the best choice is a moderate reliance on hybrid bonds rather than none or a majority-heavy structure.

<answer>25%</answer>