Investment company Aquila Capital is considering launching a €50m green bond to fund expansion of its Norwegian hydropower company Smakraft.
Aquila said the proceeds from the potential bond would be used to refinance outstanding debt, to finance new hydropower plants and for general corporate purposes.
It acquired Smakraft on behalf of its investors in 2015 and subsequently merged with Norsk Gronnkraft in 2017.
Smakraft announced plans in September to reach electricity production of 2 terrawatt-hours a year, by increasing its run-of-river portfolio through market acquisitions and organic growth.
The Bergen company currently operates more than 100 power plants across Norway producing about 1TWh a year of electricity.
ABG Sundal Collier, Nordea and SEB have been appointed joint lead managers for the growth plans.
Pension delivery organisation APG is the majority shareholder in Smakraft and recently increased its equity commitment to hydropower to €300m, Aquila said.