Greenvolt – Energias Renovaveis has issued a €200m bond convertible as part of a deal with a global infrastructure fund managed by KKR.
The Greenvolt bonds, which will be subscribed by KKR’s global infrastructure fund and will not be admitted to trading on Euronext Lisbon, have an annual interest rate of 4.75%.
The maturity of these bonds is seven years, with the possibility of conversion into Greenvolt common shares on the third anniversary of the issue date.
The bonds will be subject to negotiated terms and conditions governed by Portuguese law. The re-designation of bonds convertible into shares is subject to approval by Greenvolt’s shareholders at the annual general meeting to be held on May 31st.
The conversion price of these bonds into shares was set at €10.00, a value that implies a premium of around 25% over the volume weighted average price of Greenvolt’s common stock on the Euronext Lisbon in the 47 days preceding the agreement.
At the defined conversion value and assuming full conversion of the bonds, Greenvolt is valued at €1.6bn.
This investment, which follows several others from the global investment fund in the renewable energy sector, will allow Greenvolt to grow more quickly but also boosts its capacity to address new business opportunities.
“This is an extremely important operation for Greenvolt, as we see in KKR not only an investor, who recognises the company’s potential, but also a strategic partner, who believes in the strategy we have defined, at the same time as it will make it possible to accelerate further the fulfilment of the assumed commitments,” says Joao Manso Neto, CEO of Greenvolt.
“I am certain that it will be a strategic partnership that will generate new growth opportunities that will maximise Greenvolt’s value.”