Pacifico Renewables agrees EUR 35m debut green loan
Pacifico Renewables Yield's wind park near Berthelsdorf in Central Saxony, Germany. Image by Pacifico Renewables Yield AG.
German renewable energy producer Pacifico Renewables Yield AG (ETR:PRY) has signed a EUR-35-million (USD 39.19m) debut green loan private placement with UBS Asset Management and will use the proceeds to repay debt, strengthen its capital structure and finance the expansion of its portfolio.
The green loan has a fixed interest rate of 4.85% and is due in five years, Pacifico said on Monday.
About EUR 16.5 million of the proceeds will be spent to refinance the group's revolving credit facility while a further EUR 9.3 million will be used to refinance an existing subordinated debt facility with a higher interest rate.
The remaining EUR 9.2 million will be invested in the group's existing portfolio and the purchase of new projects.
"After initially funding growth mainly by raising equity, we consider this private placement as a landmark transaction for our company, and it demonstrates our ability to fund growth efficiently using different sources of capital," said co-CEO Martin Siddiqui.
The debt facility is the first transaction of the group's newly established Green Finance Framework which includes bonds, private placements and loans. The framework outlines the criteria for the evaluation and selection of projects in which Pacifico will invest.
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