European Energy has successfully issued EUR 75 million in a tap of its green hybrid bond in a quick intraday execution with strong demand across the Nordics. The bond issue will be consolidated with the former bonds issued 22nd of September 2020 bringing the total issue size to EUR 150 million.
The hybrid bonds will have an issue price of 101.75% (plus accrued interest) with a settlement on 15 April 2021. This corresponds to a yield of 5.3%, which is lower than what the company paid on its senior bond only 2 years ago.
– We note that the yield linked to the hybrid issue price is below our coupon of our current senior bond, which shows a strong development in our company and the renewable sector, says Knud Erik Andersen, CEO of European Energy.
– We are very happy with the opportunities to fund our accelerated construction program through the well-functioning Nordic bond market, says Knud Erik Andersen.
European Energy has initiated the construction of more than one GW of renewable energy capacity in 2021 and expects to connect 750 MW to the grid in 2021.
– We are present in more than 11 countries in Europe as well as expanding activities in the USA and Brazil. There is a healthy pipeline of projects in many of these countries, so we are looking at a very high activity level in the company, says Knud Erik Andersen.