BayWa smashes target in green bond debut

BayWa has secured hundreds of millions for its renewable pipeline via its first ever green bond raise, which ended in oversubscription. 

Contacted by PV Tech today, the firm said the €500 million (US$560 million) structure it recently placed produced an order book of €750 million (US$840 million) from interested investors.

The green bond, issued on the Luxembourg Stock Exchange, comes with a 3.125% coupon and is set to mature on 26 June 2024.

The issuance was led by BNP Paribas and co-arranged between DZ Bank, ING Bank and UniCredit Bank as joint lead managers.

According to BayWa, proceeds from the €500 million placement will go towards new and existing solar and wind projects across the globe.

Asked by PV Tech to elaborate, the firm explained no final decision has been made on target PV markets. Annual green bond updates will shed light on financed projects, BayWa said.

Preliminary consultant reports show BayWa intends to fully invest the €500 million pot within a year.

Most of the targeted PV projects come with high health and safety standards but less than half meet high standards around module recycling and elimination of toxic panel substances, consultants said.

BayWa is the parent company of BayWa r.e., a renewable developer with projects in Europe, America, Africa, Asia and Oceania.

The firm is behind one of the flagship projects of Europe’s subsidy-free PV scene – 175MW Don Rodrigo, in Spain – and has recently expanded its unsubsidised portfolio to Germany.

The news makes BayWa the second renewable player to mark success with a €500 million green bond raise in the space of a few days. Sweden’s Vattenfall opted for Stockholm for its own debut.

Tags: baywa, baywa r.e., green bond, green finance, solar finance, europe, germany, luxembourg, luxembourg stock exchange