EUSOLAG issues EUR 125m green bond to buy solar projects in Bulgaria, Romania

Solar module. Author: Oregon Department of Transportation. License: Creative Commons, Attribution 2.0 Generic.

German solar asset manager EUSOLAG European Solar AG has issued a green bond worth EUR 125 million (USD 137.1m) to fund its growth and finance the acquisition of solar projects, among others in Bulgaria and Romania, chief executive Ivan Sirakov told Renewables Now.

The bond is due in March 2027 and bears a coupon of 6.25% per year. It has been certified as "green" with a Second Party Opinion by investment research and analytics provider ISS ESG, owned by Deutsche Boerse AG (ETR:DB1).

The notes are traded on the stock markets in Frankfurt, Berlin and Duesseldorf as well as on the UBS Bond Port platform, UPIN, and Bloomberg ALLQ.

The proceeds from the bond issue will be used for building up EUSOLAG's solar portfolio. The company has already purchased its first project of 4 MW in the ready-to-build stage with available connection permits. Once operational in the third quarter of 2022, the solar park will generate more than 5 million kWh of green electricity per year. Talks are being held with energy utilities on the sale of the electricity from the solar farm.

Additionally, the company has 115 MW of projects in its acquisition pipeline, located in Bulgaria and Romania. The assets have a capacity of between 4 MW and 12 MW each and will be put into operation gradually, starting from the third quarter of 2022, Sirakov said.

The chief executive projects a further consolidation of the market for solar assets of up to 20 MW in Romania, Bulgaria as well as in EU countries in the Mediterranean region and Central Europe and expects EUSOLAG to be an active player in the process.

The Frankfurt-based investor is looking to build a portfolio of solar plants worth more than EUR 500 million in the next five years. EUSOLAG will seek to maximise the revenues from the plants on the spot market as well as with power purchase agreements (PPAs), board member Daniel Spinnler said earlier this month.

(EUR 1 = USD 1.097)

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