ContourGlobal has raised more than €1 billion in green bonds from various investors
The investors include Goldman Sachs International, KKR Capital Markets, BNP PARIBAS, Crédit Agricole Corporate and Investment Banking, HSBC and Mizuho
It plans to invest the proceeds into energy transition activities, including wind and solar energy along with battery storage
Leading global investment firm Kohlberg Kravis Roberts (KKR)-backed British power generation company ContourGlobal has successfully raised over €1 billion in green bonds. It plans for this financing to support its target to become a predominantly renewable energy independent power producer (IPP) by 2030.
The proceeds comprise €500 million in aggregate principal amount of 5% green senior secured notes. The company also issued another €510 million in aggregate principal amount of 6.75% green senior secured notes. Both are due in 2030.
This maiden corporate-level green bond issuance for ContourGlobal in almost 20 years of its existence is supported by Goldman Sachs International and KKR Capital Markets. Other contributors include BNP PARIBAS, Crédit Agricole Corporate and Investment Banking, HSBC and Mizuho.
ContourGlobal says strong investor interest ensured the response to this issuance was 4.5 times oversubscribed. It now plans to allocate an amount equivalent to the net proceeds from the issuance to acquire and/or develop certain eligible green projects, particularly solar and wind projects. This, it says, will expand its renewable energy project pipeline and accelerate the decarbonization of its portfolio.
It will contribute to the company’s overarching ambition to phase out coal, latest by 2027, to significantly reduce carbon emissions. This also includes phasing out or converting its liquid fuel assets to high-efficiency natural gas plants.
At the same time, the British firm wants to significantly scale up battery storage to support its energy transition and enhance grid stability.
“We intend to continue to invest in renewable energy, battery storage, and innovative technologies, delivering value to our stakeholders while supporting the global fight against climate change,” said ContourGlobal CEO Antonio Cammisecra.
In October 2024, ContourGlobal ventured into the US market with the acquisition of a solar energy portfolio in South Carolina, further expanding it North American pipeline with the acquisition of an 888 MW solar and storage project in the US earlier this year (see North America Solar PV News Snippets: EDF Renewables & Enbridge Commission 749 MW DC & More).