Estonian company Eleon Green’s Aidu Wind Farm is launching a €150m green bond to be listed on the Frankfurt Stock Exchange.
The 12-year green bond will provide funding to complete the ‘shovel ready’ 100MW Aidu by 2025, which already has a fully developed and permitted wind farm located in northeast Estonia.
The green bond will be structured by UK-based Bedford Row Capital, a global non-bank structuring specialist and issued by Sustainable Capital, a green bond issuance platform.
Bedford Row Capital chief executive Scott Levy said: “There is a shortage of institutional capital for mid-size projects creating above-average returns ‘greenium’ for high-impact projects.
“By democratising access to capital, BRC hopes to bridge that gap, and the Aidu is a perfect example of this.”
Aidu will also be the last beneficiary of a high-level fixed-rate government subsidy spanning 12 years at €53.7 a megawatt-hour.
Eleon Green co-founder Andreas Sonajalg said: “The agreement between the government and private sector, along with proposed subsidies displays the long-term focus required to ensure energy transformation.
“This is crucial to Estonia successfully scaling up renewable energy from its current 28.3%, and will also provide a model for both governments and private businesses tackling climate change around the world.”