Småkraft AS raised 50 million euros in new capital through the issuance of new five-year senior secured green bonds. The new funds will be used to refinance existing bonds maturing in November 2023.
– Small-scale hydropower plants are capital-intensive facilities, requiring significant investments during the establishment phase to produce renewable energy for decades. One of Småkraft’s strengths is our proven ability to secure access to long-term capital. Over several years, we have built our reputation in national and international financial markets and established a network of investors who find it attractive to contribute to value creation through responsible and sustainable production of renewable energy in Norwegian local communities, says Småkraft’s CFO, Erik Røysem Sterud.
The bond, which was placed on September 22, attracted significant interest among quality investors, primarily international ones. The books were significantly oversubscribed, meaning a larger amount was made available than Småkraft wished to borrow. The new bond is secured by 12 power stations, including Sørdalselva power station in Møre og Romsdal (pictured).
ABG Sundal Collier, DNB Markets, Nordea, and SEB were Joint Lead Managers, while Thommessen served as legal advisor.
– Småkraft is regularly active in the bond market to maintain and further develop our diversified financing from long-term investors. Along with equity financing, bank loans, and other debt instruments, the issuance of bonds is an important part of Småkraft’s strategy to achieve cost-effective financing for investments in new and existing small-scale hydropower plants, says Erik Røysem Sterud.
