Hydro co Smakraft to grow thanks to EUR-50m green bond

Investment company Aquila Capital announced a EUR-50-million (USD 56.9m) "dark green" bond offering to finance the growth of Norwegian small hydropower plants (HPPs) operator Smakraft AS.

Aquila Capital said on Monday that the senior secured green bond has a term of five years, with the annual interest at 1.9 points above the Euro Interbank Offered Rate (Euribor). The securities are traded on the Oslo stock exchange.

Bergen-based Smakraft runs more than 100 small HPPs in Norway that have the capacity to generate over 1 TWh of electricity a year. The company’s goal is to double its annual electricity production to 2 TWh by 2022.

The green bond will support Smakraft’s expansion in the Norwegian hydropower sector through acquisition of existing facilities and construction of new run-of-river plants. More particularly, the Aquila Capital-owned company plans to buy four HPPs and refinance seven of the assets it already owns.

Funds from the sale will also be allocated to refinance outstanding debt and cover general corporate needs.

Aquila Capital bought Smakraft AS on behalf of its investors in 2015 and then merged it in 2017 with Norsk Gronnkraft.

(EUR 1.0 = USD 1.139)

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