Abo Wind Unveils €50 Million Green Bond Offering with 7-8% Interest to Propel Renewable Projects

April 15, 2024
1 min read
Abo Wind Unveils €50 Million Green Bond Offering with 7-8% Interest to Propel Renewable Projects

The Abo Wind AG intends to raise up to 50 million euros in debt through a green bond. The proceeds from the corporate bond will finance the company’s ongoing growth and bring more wind, solar, and storage projects online. Starting Friday, April 12, 2024, investors in Germany, Luxembourg, and Austria can subscribe to the bond through Abo Wind’s website.

The company is issuing the bond, which will mature on May 8, 2029, with an interest rate ranging from nominally 7.00% to 8.00% per annum, and in denominations of 1,000.00 euros each. The final interest rate of the bond will also be determined by a bookbuilding process after the end of the offer, likely on May 2, 2024.

For investors in Germany and Luxembourg, the subscription functionality Directplace provided by Deutsche Börse AG will also be available from April 22, 2024. The subscription period ends on May 2, 2024 (12:00 PM CEST), unless the offering period is extended or shortened.

Further information including a detailed description of the necessary steps for subscription, and the legally relevant securities prospectus to be approved by the Commission de Surveillance du Secteur Financier (CSSF), will be provided on the company’s website.

The net proceeds from the bond issuance, up to 48 million euros, are intended to finance ongoing and future renewable energy and storage projects. The funds will be invested in the development and construction of wind and solar parks as well as battery storage (individually and combined), according to the framework for green bonds set up by ABO Wind. The intended and documented use of the funds from the bond complies with the guidelines of the Green Bond Principles of the International Capital Market Association (ICMA), as confirmed by the expert opinion of imug rating.

CFO Alexander Reinicke announced that following the successful issuance of a bond running until 2030 in 2021, they are now introducing a Green Bond for the first time. Abo Wind has heavily invested in expanding its pipeline in recent months. These are wind and solar parks as well as battery storage in the development phase. Currently, projects with a nominal capacity of around 23 gigawatts are under development.

Reinicke emphasized that they have significantly bolstered the foundation for ongoing successful business growth and expressed eagerness for investors to assist in enhancing their financial position.

Sunita Somvanshi

With over two decades of dedicated service in the state environmental ministry, this seasoned professional has cultivated a discerning perspective on the intricate interplay between environmental considerations and diverse industries. Sunita is armed with a keen eye for pivotal details, her extensive experience uniquely positions her to offer insightful commentary on topics ranging from business sustainability and global trade's environmental impact to fostering partnerships, optimizing freight and transport for ecological efficiency, and delving into the realms of thermal management, logistics, carbon credits, and energy transition. Through her writing, she not only imparts valuable knowledge but also provides a nuanced understanding of how businesses can harmonize with environmental imperatives, making her a crucial voice in the discourse on sustainable practices and the future of industry.

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