European Energy Launches €300 Million Green Bond

• European Energy has launched a green senior corporate bond on Nasdaq Copenhagen with €300 million nominal size
• Proceeds will be deployed to invest in wind and solar power plants, as well as to repurchase and redeem the existing senior secured green bond of €200 million
• Company had an active project development pipeline of over 17 GW at the end of Q2/2021, with solar PV making up the lion's share
• Admitting to supply chain pressures, management anticipates construction delays for projects in the future

To support its growth in the future, Denmark based renewable energy developer European Energy A/S has launched a new green senior corporate bond with a nominal size of €300 million. It said the bond issue is expected to be the largest green bond of a corporate issuer at Nasdaq Copenhagen.

The green bonds have a maturity date of 2025 and will be listed on Nasdaq Copenhagen within 3 months after the issue date.

European Energy said this issuance will provide it flexibility to scale up senior financing and support its growth. Proceeds will be used to invest in wind and solar plants and to also repurchase and redeem the existing senior secured green bond of €200 million.

The green bond issuance follows green hybrid bonds on the Nasdaq Copenhagen stock exchange totaling €75 million, in April 2021.

It would need the capital infusion to support its more than 17 GW active development pipeline of solar and wind energy projects spread over 17 nations, as at the end of Q2/2021. Of this, around 75% pipeline comprises solar PV technology. Till then it had 542 MW solar PV capacity under construction, and 587 MW of wind. Management expects a significant amount to be grid connected within 2021.

While admitting experiencing increasing supply chain pressures including those related to transportation, management affirmed 'recording a rise in enquiries from old and new partners alike to acquire existing and future wind and solar power plants – and see no shortage of potential partners for all stages of our projects'.

Its Q2/2021 revenues declined 30% YoY to €26 million, thanks mainly to a 48% drop in sale of energy farms. European Energy sold €10.3 million electricity in the quarter, growing 14% over previous year. "The increasing electricity prices experienced throughout H1 21 has low impact on revenues as most prices are secured through Feed-in-Tariffs, Power Purchase Agreements 's and more," stated the management. Gross profit dropped 11% to €12 million, while EBITDA went down by 26% to €7 million.

For 2021, the group maintains its guidance of €80 million EBITDA and profit before tax as €50 million. Along with COVID-19 pandemic related restrictions, European Energy expects overall shortage of containers in the global market to impact construction delays for projects, but the container shortage won't have any effect on the estimated revenue for 2021, it added.

Expansion on its mind, European Energy entered the US solar market under a joint venture with the Renewable Energy International in April 2021 (see European Energy To Explore Solar Power Market In US).