Aquila Capital mulls green bond to support infra

Hydroelectric_stationAquila Capital, an alternative investor, said it is “contemplating” the launch of a green bond to finance more growth for a Norwegian hydropower operator.

The €50 million bond would finance activities of Småkraft AS, which Aquila Capital acquired in 2015 and subsequently merged with Norsk Grønnkraft in 2017.

The company, based in Bergen, is the largest operator of small hydropower plants in Europe and operates more than 100 power plants across Norway.

 APG, a pension provider, is the majority shareholder in Småkraft and has recently increased its equity commitment to hydropower to €300 million, according to Aquilla.

Småkraft wants to double its electricity production annually to reach 2 TWh with acquisitions and organic growth.

ABG Sundal Collier, Nordea and SEB are joint-lead managers in the finance-raising and have begun talking to investors.

A senior secured green bond issue with a volume of €50 million and a duration of five years may follow, Aquilla said. Proceeds would be used to refinance outstanding debt, finance new hydropower plants and for general corporate purposes.

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