INVL Renewable Energy Fund I Completes Successful Bond Offering
REFI Sun, part of the INVL Renewable Energy Fund I, managed by INVL Asset Management, has recently achieved a significant milestone by raising EUR 15 million through a public bond offering aimed at both retail and institutional investors in the Baltics. The successful fundraising effort underscores the increasing interest in renewable energy financing methods.
Utilizing Proceeds for Growth in Renewable Energy
The capital secured from this bond issue will be strategically allocated to developing renewable energy projects, particularly solar power plants, across promising markets such as Poland and Romania. Specifically, the fund is setting its sights on building a portfolio of solar plants boasting a total capacity of 389 megawatts (MW), while also refinancing existing loans to enhance financial stability.
High Demand from Investors
This particular bond offering saw overwhelming interest, amassing a total demand of EUR 15.636 million, with participation from 567 eager investors. Liudas Liutkevi?ius, the Managing Partner of the INVL Renewable Energy Fund I, expressed his satisfaction, stating that investors continue to show strong confidence in the fund's capabilities in navigating the renewable energy landscape in these evolving markets.
Bond Issue Details and Organizers
The bond issue was orchestrated by Artea Bank, with distribution support from Evernord in Lithuania, LHV Bank in Estonia, and Signet Bank in Latvia. This multi-faceted approach facilitated a well-rounded investment opportunity for various investor profiles.
Investor Benefits and Structural Insights
Institutional investors accounted for 57.75% of the bonds issued, while retail investors made up the remaining 42.25%. The majority of funds raised originated from Lithuania, with smaller portions coming from Latvia and Estonia. Bondholders are set to benefit from an attractive annual interest rate of 8.5% over a 2.5-year period, with interest payments made quarterly. A minimum investment of EUR 1,000 was required to participate in this opportunity.
Future Growth and Development Plans
Going beyond this bond issuance, the INVL Renewable Energy Fund I is focused on achieving significant milestones in renewable energy investments across Poland and Romania. The fund aims to exceed EUR 250 million in total investments, with ongoing projects already surpassing EUR 90 million in cumulative funding.
Detailed Project Insights
In Romania, the fund is actively investing in a series of eight solar power plants, collectively capable of generating 356 MW. Meanwhile, in Poland, several solar park projects are under development, cumulatively expected to contribute over 32 MW of solar capacity. These initiatives highlight the fund's commitment to renewable energy and sustainability.
Becoming a Leader in Renewable Energy Investments
With the recent bond issue, the INVL Renewable Energy Fund I has now raised a total of EUR 88.9 million from investors through different offerings, emphasizing its growing influence in the renewable energy sector. The expected completion date for all associated solar park constructions is set for the end of 2027, positioning the fund for long-term growth.
About INVL Renewable Energy Fund I
The INVL Renewable Energy Fund I was launched on 20 July 2021 by INVL Asset Management, noted as a top alternative asset manager in the Baltics. The focus of this fund is on early- to mid-stage renewable energy projects, specifically in solar infrastructure, aimed at driving significant advancements within the energy field in the European Union and beyond.
For more tailored inquiries, interested parties can reach out to Liudas Liutkevi?ius, Managing Partner of the INVL Renewable Energy Fund I, via email at liudas.liutkevicius@invl.com.
Frequently Asked Questions
What is the purpose of the EUR 15 million raised?
The funds will be used to finance new renewable energy projects in Poland and Romania, and to refinance existing loans.
Who's managing the INVL Renewable Energy Fund I?
INVL Asset Management, a leading alternative asset manager in the Baltics, manages the fund.
What types of investments does the fund focus on?
The fund invests primarily in early to mid-stage renewable energy projects, especially solar power plants.
What are the expected returns for bondholders?
Bondholders are set to receive an annual interest rate of 8.5% on their investments.
Where will the auctioned bonds be listed?
The bonds are expected to be listed on the First North alternative securities market managed by Nasdaq Vilnius.
