Alternus Energy Group PLC said it has successfully completed a tap issue of €20 million of its senior secured green bond issue, aimed at growing photovoltaic (PV) capacity across its core markets.
The independent power producer said Arctic Securities AS acted as financial adviser and sole bookrunner for the tap issue, which was completed through wholly-owned subsidiary, Solis Bond Company DAC.
The proceeds are intended to fund the acquisition of 14 operational Polish PV assets, totaling 14 megawatts peak (MWp) and 1 Italian PV asset of 1 MWp, in addition to the recapitalization of an existing Italian park, the company added.
READ: Alternus Energy doubles its installed capacity as it enters Polish power market with Witnica acquisition
“This is the second bond issuance that our team has successfully completed this year,” Alternus chairman and CEO Vincent Browne said in a statement. “The speed at which we were able to complete this transaction demonstrates both the flexibility of our bond financing structure and the effectiveness of our business model.
“The fact that it was significantly oversubscribed shows that our portfolio of European operating solar assets is a highly attractive investment opportunity, from both an economic and ESG perspective.”
Alternus said the acquisitions will strengthen its position across its core markets and increase its total operating capacity by 12% and long-run underlying earnings (EBITDA) by approximately 8%.
The tap was completed at an issue price of 102% of par value, corresponding to a yield of 5.5% and a spread of approximately 608 basis points, with settlement expected to take place on 12 November 2021. The current outstanding amount under the bond terms is now €130 million and the borrowing limit is €200 million.
“We look forward to further successful issuances as part of our ambitious growth plans to achieve 3.5 gigawatts of operational capacity by 2025,” Browne concluded.
Alternus Energy Group is a pan-European vertically integrated independent power producer (IPP) that is currently listed on the Euronext Growth Market - Oslo.
Headquartered in Ireland, the company is focused on the midsized utility-scale solar PV market. Alternus owns and operates a diverse portfolio of utility-scale solar PV parks on long-term government contracts and/or power purchase agreements with investment-grade off-takers. Having started in 2016 with two parks and six MWp capacity, the current operational portfolio consists of 24 parks across Poland, Romania, Italy, the Netherlands, and Germany totaling 130 MWp.
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