Green energy provider Alternus, which has its headquarters in Dublin, has completed a €20 million bond issuance, with the proceeds to be used to acquire 15 megawatts (MW) of additional capacity in Poland and Italy.
Alternus, which recently listed on the Euronext Growth Market in Oslo, said it was buying 14 operational Polish solar photovolatic (PV) assets totalling 14MW, along with one Italian PV asset totalling 1MW. The deals are expected to be completed by the end of 2021.
The company is focused on the midsized utility scale solar PV market. Having started in 2016 with two parks and 6MW capacity, its current operational portfolio consists of 24 parks across Poland, Romania, Italy, the Netherlands and Germany totalling 130MW.
Alternus is aiming to become one of the largest pan-European independent power producers by the end of the decade. It has a target of more than 3.5 gigawatts of solar parks by the end of 2025.
Tap issue
The new bond issuance was completed at an issue price of of 102 per cent of par value, corresponding to a yield of 5.5 per cent and a spread of about 608bps. Settlement of the tap issue is expected to take place by the end of this week. The current outstanding amount under the bond terms is now €130 million and the borrowing limit is €200 million.
"This is the second bond issuance that our team has successfully completed this year. The speed at which we were able to complete this transaction demonstrates both the flexibility of our bond financing structure and the effectiveness of our business model," said chief executive Vincent Browne.
“The fact that it was significantly oversubscribed shows that our portfolio of European operating solar assets is a highly attractive investment opportunity, from both an economic and an environmental, social, and governance (ESG) perspective,” he added.
