Småkraft successfully places its second Green Bond

On Friday March 26th, Småkraft AS successfully placed its second Green Bond of EUR 50m, through arrangers DnB, Nordea and SEB.

“Småkraft is set to grow its operational platform to develop additional power plants to generate 2 TWh of renewable energy by 2022. Green Bonds broaden our sources of funding and contribute to our aim to accelerate Europe’s energy transition,” comments Terje Vedeler, CEO of Småkraft.

Erik Røysem Sterud, Småkraft’s CFO, states that “Our Green Bond Programme complements the backing of our pension fund and insurance owners and further diversifies the financing capabilities to meet our growth ambitions”. The strong equity ratio of 47% with a policy to maintain a Loan-to-Value of 50% illustrate the financial health of the company that has nearly 80% of its balance sheet in fixed long- term assets.

Although 2020 proved to be a challenging year for the industry with power prices dropping by 80%, Småkraft maintained a robust EBITDA and achieved record production. The company is set to acquire a further 18 hydropower plants currently being built.

Established in 2002, Småkraft is Europe’s largest operator of small-scale hydropower plants. Småkraft currently owns and operates 130 small hydropower plants generating more than 1,400 GWh of renewable electricity annually across Norway. Småkraft’s Green Bond Framework has the highest possible green shading from CICERO, Dark Green.