Alternus Energy Set to Acquire 15 MWp of Additional Capacity in Poland and Italy Following Successful €20 Million Bond Issuance

PVTIME – On November 8, Pan-European Independent Power Producer (“IPP”) Alternus Energy Group Plc (OSE: ALT) (the “Company” or “Alternus”) through its wholly owned subsidiary, Solis Bond Company DAC, has successfully completed a tap issue of EUR 20 million of its senior secured green bond issue (ISIN: NO0010914914). Arctic Securities AS acted as financial adviser and sole bookrunner for the tap issue.

The proceeds’ intended use is the acquisition of 14 operational Polish PV assets totalling 14 megawatt peak (MWp) and 1 Italian PV asset (1 MWp) in addition to the recapitalization of an existing Italian park. Completion of the acquisitions are subject to customary conditions precedent that are anticipated to be finalised in December 2021.

The tap was completed at an issue price of 102% of par value, corresponding to a yield of 5.5% and a spread of approximately 608 bps. Settlement of the tap issue is expected to take place on 12 November 2021. The current outstanding amount under the bond terms is now EUR 130 million and the borrowing limit is EUR 200 million.

Speaking about the issuance, Chairman and CEO, Vincent Browne said

“This is the second bond issuance that our team has successfully completed this year. The speed at which we were able to complete this transaction demonstrates both the flexibility of our bond financing structure and the effectiveness of our business model. The fact that it was significantly oversubscribed shows that our portfolio of European operating solar assets is a highly attractive investment opportunity, from both an economic and ESG perspective. The proceeds will be used to strengthen our position across our core markets and increase our total operating capacity by 12%, and long run EBITDA by approximately 8%. We look forward to further successful issuances as part of our ambitious growth plans to achieve 3.5 gigawatts of operational capacity by 2025.”