Independent power producer Encavis has raised capital in the region of €170m that it will use to finance a growing pipeline projects suitable for long-term power purchase agreements.
The company, which generates electricity from solar and wind assets in Germany, increased its hybrid convertible bond to a total nominal amount of €150m.
Including the premium of €7.55m Encavis has also raised around additional €60m in free liquidity, increasing the company’s financial resource to finance PPAs to around €170m.
Encavis chief financial officer Christoph Husmann said: “Encavis is ideally equipped for further strategic growth in the promising market of long-term private sector PPAs.”
The PPAs are contracts between Encavis and private buyers that set the long-term purchase of electricity from renewable sources at a fixed agreed price.
PPA contracts are replacing government-backed feed-in-tariffs in Germany.
“The proceeds will consequently be used to finance the numerous and attractive large projects we are currently focused on,” Husmann added.