Green financing in European Energy

Capital structure in European Energy

A two-layered capital structure

The Group operates a two-layered capital structure. The parent company constitutes the top-layer of the capital structure, which includes funding that is unsecured and structurally subordinated to project-level financing at the bottom. The latter is predominantly secured bank financing of renewable energy projects either under construction or in operation. The Group’s financial policy is defined by a set of financial maintenance covenants included in the terms and conditions of the senior unsecured bonds issued by the parent company. These are:

1. A minimum parent company equity to total assets (excl. cash) of 25%
2. A maximum group project financing to group project assets (PPE and Inventories) of 75%

Debt funding of the parent company is based entirely through Nasdaq Copenhagen listed bonds with “Nordic”-style documentation and issued under the company’s green financing framework.