Hamburg-based Aquila Capital plans to invest a €50m green bond via Småkraft to finance the further growth of the Norwegian hydropower plant operator, the majority of which is owned by the Dutch pension scheme APG.
Aquila Capital acquired Småkraft AS in 2015 for its investors and merged with Norsk Grønnkraft in 2017. The Bergen-based company is the largest operator of small hydropower plants in Europe, with an annual electricity production of more than 1 TWh.
Dutch pension fund manager APG is the majority shareholder of Småkraft and has recently increased its hydropower investment to €300m.
In September 2018, Småkraft announced its goal of increasing annual electricity generation to 2 TWh, with growth coming from the construction of new run-of-river power plants and the purchase of existing ones. Currently, the company operates more than 100 power plants throughout Norway.
ABG Sundal Collier, Nordea and SEB have been appointed joint lead managers to arrange investor meetings in Northern Europe and Germany from 9 to 19 October 2018. Subject to the market environment and other factors, a senior secured green bond over €50m with a maturity of five years is expected to be issued. The capital raised through this bond will be used to refinance existing liabilities, invest in new hydropower plants, purchase existing hydroelectric power plants or for general corporate purposes.