Greencells' solar farm in Coombeshead, the UK, one of more than 2.1GWp of projects completed by the company. Image: Greencells.
German solar engineering, procurement and construction (EPC) provider Greencells has issued a secured green bond worth €25 million, the proceeds of which will be used to target a substantial EPC pipeline.
The company, which also provides operations and maintenance (O&M) services, has issued the bond with a volume of up to €25 million (US$29.5 million) with a coupon of 6.5% per annum over a term of five years. The green bond has been certified by sustainability rating agency imug, and investors will be able to participate from 16 November to 7 December.
Proceeds from the bond issue will be used by Greencells to accelerate sales growth in Europe and beyond, Andreas Hoffmann, founder and CEO at Greencells said.
“With a secured EPC pipeline of 1.8 GWp, we already have an excellent basis for our further dynamic growth,” Hoffmann said, revealing the company expects sales between now and 2024 to top €850 million (US$1 billion).
Greencells said it had around 506MWp of solar projects currently under construction or already completed this year, a figure which had been slightly impacted by the pandemic triggering some development delays, although no projects were cancelled entirely. The company said it expects a “slightly dampened” half-year turnover figure in 2020, however this will climb throughout 2021 as development work accelerates and Greencells said it had already secured projects with a forecasted turnover of €113 million for next year.
The bond is to be secured against shares in solar project companies with a net security value of €34.5 million and assignment of EPC proceeds with a contract value of at least €10 million.
The fundraise comes little more than two years after Saudi Arabian conglomerate Zahid Group took a 50% stake in Greencells, a transaction Hoffmann described as being an “inflection point” for the company at the time.
May 26 - May 27, 2021
Looking at the drivers and dynamics of utility scale solar in the UK & Ireland over the next five years. This event will consider the immediate challenges as we enter the build phase in both these markets where we could see as much as 4GW deployed in 2021 alone! What developments will continue the growth of 100MW+ sites and what impact will government policy have on the rate of deployment in both markets?Join leading developers and manufacturers shaping the direction of one of Europe’s most active markets and hear from speakers with a history of influencing innovation and change.
Feb 03 - Feb 04, 2021
The business of solar is changing, as the industry scales up, technology, IT and new players to the market will add complexity. This sparks a host of opportunities such as co-location of solar and storage and the rise of unsubsidised solar projects as well as challenges which will question the very business model of European solar asset owners. Solar Finance & Investment Europe is the meeting place for institutional investors, sovereign wealth funds, solar, wind and storage funds and large energy buyers to do business.