European Energy has issued a €75m green bond to raise proceeds for financing and refinancing its renewable energy projects.
The interest rate of the new green senior bond is three-month Euribor (0% floor) plus a margin of 5.75% annually.
The bond will mature in 2026 and will be listed on Nasdaq’s Sustainable Debt platform.
“The construction of new renewable capacity relies on efficient and scalable funding and with this bond, we can increase our construction activity,” said Knud Erik Andersen, CEO of European Energy.
He added: “The current market condition is subject to a significant shift, primarily driven by high and very volatile power prices combined with higher construction costs.
“However, with the issuance of this new bond, European Energy has clearly shown that investors appreciate our strong financials and outlook and by providing us funding, we can continue our projected growth.”
At the moment, European Energy has three bonds listed, which are a €300m green senior bond maturing in 2025, a €75m green senior bond maturing in 2026 and a €150m green hybrid bond maturing in 2030 with first call in September 2023.
European Energy has projects across 26 countries and a 40GW development pipeline and more than 1GW of renewable energy under construction.
The company is expecting to connect up to 1GW of renewable energy capacity by the end of 2022.