European Energy A/S has closed the book on a new green bond at EUR 140 million at 5.35 per cent interest. The bond received significant attention from investors and was oversubscribed with requests for 296 EUR million.
Part of the proceeds will fund new green projects, while the remaining proceeds will be used for an early redemption of the company’s outstanding 2021 Bonds. European Energy’s outstanding bond is at 85 EUR million.
Knud Erik Andersen, CEO of European Energy A/S said:
“We are grateful for the trust that the investors have shown in us. We have had substantial interest in our new green bond, and we are especially pleased that many of our existing bondholders have committed to invest in the new bond. I think that this level of interest reflects the global trend toward investors searching for green investment opportunities.”
European Energy currently has more than 500MW of new renewable energy parks either under construction or in Ready-To-Build status.
“The past couple of years we have gradually increased the total MW we construct each year. Our new green bond will support that development. Within a few years, we aim to construct 1GW every year, and we are in the process of preparing ourselves for that change,” said Knud Erik Andersen.
97 investors has secured an allocation of the new green bond from European Energy. The bond will be the first from a non-financial institution listed on Nasdaq Green Bond Index Danmark.