Donkey Republic aims to raise up to €3M in debt capital through Oneplanetcrowd for fleet expansion in 2022
Donkey Republic aims to raise up to 1.5M-3M EUR in debt capital from Oneplanetcrowd (“OPC”). The money will be used to finance up to 4,500 bikes and ebikes that will be either deployed in Donkey Republic's own fleet or sold to their partners to extend their network as part of our already communicated growth plan for 2022.
Expanding our fleet via debt financing is a key part of Donkey Republic’s business plan as previously communicated. Additionally by using a crowdsourcing platform such as OPC the company can further engage with their local rider community in one of its key markets: the Netherlands.
The debt will be sought in the form of a bond loan that will be issued by Donkey Republic Bike BV. based in the Netherlands, a 100% subsidiary of Donkey Republic Holding A/S. The crowdfunding campaign is targeted towards Dutch retail investors and Will go live later this week and runs until the 11th of March 2022. The fundraising will be completed only in the event that the minimum target amount of 1.5M EUR is raised.
The duration of the Bond Loan is approximately 5 years, until January 1st 2027. The Bond Loan will be repaid in quarterly installments as of January 1st 2023.
HOW FUNDING OF BIKES FITS IN OUR BUSINESS PLAN
One of the main components of Donkey Republic's 2024 business case is the growth of its fleet to 50K bikes. This requires Donkey Republic to purchase more than 10K bikes in 2022, of which appr. 60% will be pedal bikes and 40% will be e-bikes. This loan will enable Donkey Republic to purchase approximately 3,000 pedal bikes and 1,500 e-bikes. The exact mix will be decided in the course of Q1 2022.
Many of these bikes and e-bikes will be deployed in the Netherlands, while others will go to Donkey cities across Europe. Donkey Republic expects some of them to be sold to partners, while most will be used in operations that Donkey Republic owns and manages.
OPC is a Dutch crowdfunding platform that brings together innovative companies and future-oriented investors to accelerate the transition towards a sustainable economy. The Netherlands is one of Donkey Republics key markets continuously growing with approximately 2,300 bikes in the Netherlands today serving all the key cities in the Randstad: Rotterdam, Amsterdam, DenHaag and Utrecht.
"As a Danish company, we see the Netherlands as a sister country and market with a very strong cycling culture. Raising funding with Oneplanetcrowd enables us to build our brand further and establish the community around Donkeys in one of our key markets: the Netherlands. ”
- Erdem Ovacik, CEO at Donkey Republic
Recognising the potential in sustainable mobility investments
OPC has existed since 2012 and this is the second time Donkey Republic collaborates with them. Last time was in 2019 when Donkey Republic raised 0,7M EUR.
“Donkey Republic helps cities to decrease car traffic, improving mobility and air quality. Hence making the cities more liveable and futureproof. We are proud to support Donkey Republic in their further growth.” – Maarten de Jong, Co-founder and Managing Director Oneplanetcrowd.
Campaign details
The interest rate on the Bond Loan is 7.0% per year (6.2% net interest after deduction of the management fee of 0.8% to Oneplanetcrowd). The interest on the Bond Loan will be paid quarterly for the first time on July 1st 2022. The bonds have no bonus interest.
The issuing institution pays an extra 1% interest in the form of Donkey Credits. The bonds will not be admitted for trading.
Issuer: DonkeyRepublic Bike BV
Financing form: Bond loan
Target amount (minimum): € 1.500.000
Maximum amount: € 3.000.000
Gross Interest: 7% + 1% in Donkey credits
Net interest: 6,2 % + 1% Donkey credits
Term: 5 years
Repayments: Start per April 1st 2023 in quarterly repayments
ABOUT ONEPLANETCROWD
Oneplanetcrowd is the largest sustainable funding platform in the Netherlands. The platform connects innovative entrepreneurs and forward-looking investors to accelerate the transition to a sustainable economy. Entrepreneurs and energy projects that contribute to the Sustainable Development Goals can receive funding from the crowd via the platform. Future-oriented investors can invest directly in innovative and sustainable projects.
Oneplanetcrowd offers (re)financing ranging from € 100,000 to € 10+ million and a committed group of ambassadors who provide publicity and marketing value. Since 2012, Oneplanetcrowd has financed over 250 entrepreneurs and energy projects totaling € 70 million with a community of 30,000 investors.
CONTACT INFORMATION
DonkeyRepublic Holding A/S
Erdem Ovacik, CEO
+45 26 37 29 96
Katrine Arevad, Public & Investor Relations Manager
+45 53 53 43 31
Skelbækgade 4, trappe B, 4. sal.
1717 København V
www.donkey.bike
Mail: investor@donkeyrepublic.com
Investor website: www.invest.donkey.bike
Financial and Certified Adviser:
Clearwater International
Andreas Lauth Lauridsen
Dampfærgevej 8, 1. floor
DK-2100 Copenhagen
certified.adviser@cwicf.com
www.clearwaterinternational.com/dk
ABOUT DONKEY REPUBLIC
Donkey Republic is one of Europe's leading providers of end-to-end bike-sharing solutions providing both pedal- and e-bikes. The company aims to provide affordable and sustainable urban mobility for the masses, by partnering with cities to turn the humble bike into the hero of urban transport. The company is expanding across Europe and as of Q4 2021, it operates +13,000 bikes in 24 cities as a Mobilityas-a-Service (“MaaS”) provider. Furthermore it licenses its platform as Software-as-a-Service (“SaaS”) to partners operating 3,200 bikes across +60 cities. Based on its proprietary software at the core, Donkey Republic offers cities and local partners a fully integrated turn-key solution, including software critical to all stakeholders, bikes, operations, and support services. Donkey Republic believes that bike-sharing can be a key enabler to the green transition of our economies and to make cities more liveable.
