Greencells to raise up to EUR 25m in green bond sale for growth

The Roundponds solar park in Wiltshire. Source: Greencells GmbH

November 17 (Renewables Now) - German solar plant builder Greencells GmbH is looking to raise up to EUR 25 million (USD 29.7m) via the issuance of a green bond to accelerate growth.  

The company said on Friday that the funds will be used for the acquisition of almost-ready-to-build project rights to expand the business of its sister development company Greencells Group Holdings. This will mean more secured engineering, procurement and construction (EPC) and operations and maintenance (O&M) contracts for Greencells GmbH.

"With a secured EPC pipeline of 1.8 GWp, we already have an excellent basis for our further dynamic growth," said Greencells founder and chief execute Andreas Hoffmann. He added that the company expects sales of over EUR 850 million until 2024, based on current market values.

In 2020 it expects sales to be in line with last year's EUR 85.5 million. The company explained that the COVID-19 restrictions have dampened first-half revenues as there have been some construction delays but it has almost managed to make up for this. For the following years the EPC contractor projects annual growth of about 30%.

Greencells focuses on OECD countries and more than 50% of its own development pipeline is in the EU. The company says that solar offers good prospects due to its competitive generation costs and the long-term power purchase agreements (PPAs) with energy suppliers and large companies that are now used in many countries.

The secured five-year bond, which carries a coupon of 6.5% per annum, will be sold in a public offering in Germany, Austria and Luxembourg from November 16 to December 7. The bookrunner, ICF Bank AG, will also conduct a private placement to qualified investors in Germany and other select European countries.

(EUR 1 = USD 1.187)

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Plamena has been a UK-focused reporter for many years. As part of the Renewables Now team she is taking a keen interest in policy moves.

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