European Energy sets a record with the issuance of a new green senior corporate bond. The bond issue is expected to be the largest green bond of a corporate issuer to be listed on Nasdaq Copenhagen to date with a nominal size of EUR 300 million and maturity in 2025.
European Energy has today priced its new green senior bond at a margin of 3.75% plus 3 months EURIBOR (with zero floor).
The new issuance provides for a full reset of the terms of European Energy’s senior bond and will provide flexibility to scale up senior financing going forward, in order to support the company’s growth. Proceeds from the new bond will be used in accordance with European Energy’s new Green Finance Framework to invest in wind and solar plants and to repurchase and redeem the existing senior secured green bond of EUR 200 million.
The new bonds are expected to be listed on Nasdaq Copenhagen within three months after the issue date.
European Energy has appointed Danske Bank, Nordea and DNB as joint bookrunners for the issuance of the new bond. This group of banks are core relationship banks. In connection with this transaction, they have agreed to provide a green revolving credit facility of EUR 45 million to European Energy to improve the company’s ongoing liquidity management.
– As front-runners in combatting climate change, we have been scaling up our organization to be able to grasp the growing renewable energy project opportunities. This means that we have quadrupled the construction of green energy capacity to more than 1,1 GW since last year. With our new financing structure, we will be able to further accelerate the growth of the company and keep up with the increasing demand for green projects, says Knud Erik Andersen, CEO of European Energy.
European Energy has recently released an updated Green Financing Framework which serves as a guideline rule for the use of proceeds from bonds and loans to the company. The framework is aligned with the Green Bond Principles published by the International Capital Markets Association (ICMA) and the Green Loan Principles published by the Loan Market Association (LMA). European Energy intends to be aligned with the Climate Delegated Acts of the EU Taxonomy (“EU-Taxonomy”). European Energy has engaged DNV to act as an external verifier of this Green Financing Framework by way of a second party opinion.
– I’m happy to see the bond was significantly oversubscribed and with a solid interest from both Nordic and European investors. With our Green Finance Framework as well as the new bond, European Energy is well-positioned for the fight against climate change. These instruments show that we are serious about accountability in our daily work as well as offering a high yield return of investment for investors who wish to proceed with green investments, says Knud Erik Andersen.