Småkraft AS has successfully raised EUR 50 million through the issuance of 5-year new senior secured green bonds. The new funds will be used to refinance existing bonds maturing in November 2023.
“Small- scale hydropower stations are capital-intensive assets where significant investments are made initially to create renewable energy over decades. One of Småkraft’s strengths is our proven access to long-term responsible capital. Over several years, we have built our reputation in the domestic and international financial markets and obtained a network of investors who see the attraction in contributing to value creation through responsible and sustainable production of renewable energy in Norwegian local communities, said CFO of Småkraft Erik Røysem Sterud.
The bond, which was placed 22 September, met significant interest, first and foremost from international quality investors, and books were substantially oversubscribed. The new bond is backed by 12 power stations, among them Sørdalselva power station in Møre og Romsdal (picture).
ABG Sundal Collier, DNB Markets, Nordea and SEB were Joint Lead Managers, while Thommessen was legal advisor.
“Småkraft is regularly active in the bond market to maintain and further develop our diversified financing from long- term investors. Together with equity funding, bank loans, and other debt instruments, the bond issuance is an important part of Småkraft’s strategy for obtaining cost efficient funding for investments in new and old small- scale hydro power stations,” says Chief Financial Officer, Erik Røysem Sterud.
