Norwegian hydro firm Smakraft may back ops with green bond issue

Investment company Aquila Capital said Tuesday it is considering launching a EUR-50-million (USD 57.6m) green bond to finance the further growth of Norwegian small hydropower plants (HPPs) operator Smakraft AS.

Aquila Capital said that it is likely to issue a senior secured green bond with a term of five years. The idea is to secure funds to refinance outstanding debt, finance new hydro projects and for general corporate purposes.

Bergen-based Smakraft runs more than 100 small HPPs that have the capacity to generate over 1 TWh of electricity a year. The company intends to grow both through acquisitions and organically in order to reach 2 TWh of annual electricity production.

Aquila Capital bought Smakraft AS on behalf of its investors in 2015 and then merged it in 2017 with Norsk Gronnkraft. The latest statement by the investment firm notes that pension delivery organisation APG is the majority owner of Smakraft and has recently increased its equity commitment to hydropower to EUR 300 million.

(EUR 1.0 = USD 1.151)

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