INVL Renewable Energy Fund I Announces EUR 8 Million Bond Offering
The INVL Renewable Energy Fund I, overseen by INVL Asset Management, a leading alternative asset manager in the Baltics, is set to commence a public offering of EUR 8 million in bonds through its subsidiary, REFI Energy. This move is aimed at attracting both private and institutional investors within the Baltic region, with the funds intended to refinance previously issued bonds.
Bond Details and Financial Structure
This bond issue will mature in 2.5 years, boasting a fixed interest rate projected between 7.5% and 8.5%. The precise interest rate will be disclosed upon completion of the offering, with interest payments scheduled to be made quarterly. Notably, the INVL Renewable Energy Fund I will extend guarantees to all bondholders, strengthening the investors' confidence.
Renewable Energy Projects Across Borders
Liudas Liutkevi?ius, Managing Partner of the INVL Renewable Energy Fund I, highlights the fund's commitment to advancing renewable energy projects, specifically solar power plants, in countries like Romania and Poland. He is optimistic that a successful bond offering will facilitate not just the execution of planned projects, but also aid in reducing debt costs by refinancing bonds issued earlier in 2023.
Offering Timeline and Management
The public bond offering will take place from early February until the specified deadline on 17 February. Šiauli? Bankas will act as the manager and distributor for this bond offering. Furthermore, the legal firm TGS Baltic is appointed as the certified advisor to the issuer, while Audifina will serve as the trustee for bondholders. Investors can expect the debt securities to be listed within three months of the offering's conclusion on the First North alternative securities market, which is overseen by Nasdaq Vilnius.
Understanding the Fund's Previous Offerings
The REFI Energy company under the INVL Renewable Energy Fund I previously engaged investors by raising EUR 3.5 million through a private placement in June 2023. This was followed by a public bond offering in September, which garnered EUR 4.5 million, also with a two-year maturity. Notably, those bonds, exclusive to Lithuanian investors, yielded 10%, which illustrates the fund's successful track record in the public bond market.
Growth Prospects in Romania and Poland
With a clear focus on the Polish and Romanian markets, the fund's managers anticipate substantial growth potential in these regions. Currently, the total capacity of projects in development reaches an impressive 388 MW. In Romania alone, the fund is directing investments into eight solar plant projects that will collectively deliver a capacity of 356 MW, while in Poland, initiatives are underway for solar parks exceeding 32 MW. Overall investments in these projects are anticipated to surpass EUR 258 million, with construction slated for completion by the end of the first quarter of 2027.
Fund's Achievements and Future Outlook
To date, the INVL Renewable Energy Fund I has successfully raised EUR 73.9 million through various investment units and bond offerings. This milestone showcases the fund's ability to attract significant investments and reflects its robust operational strategy in the renewable sector.
As further updates and details are expected to unfold, the INVL Renewable Energy Fund I continues to position itself as a pivotal player in the renewable energy landscape, driving innovation and investment in sustainable solutions.
Frequently Asked Questions
What is the purpose of the bond offering?
The bond offering aims to refinance previously issued bonds and fund renewable energy projects in Romania and Poland.
Who is managing the bond offering?
Šiauli? Bankas is managing and distributing the public bond offering for INVL Renewable Energy Fund I.
What is the expected maturity for the bonds?
The bonds will have a maturity of 2.5 years with interest payments made quarterly.
How much funding has the fund raised previously?
The INVL Renewable Energy Fund I has raised EUR 73.9 million from investors through various channels.
What is the total capacity of the fund's projects?
The fund targets a total capacity of 388 MW for its ongoing and future renewable energy projects in the targeted regions.
