Pareto advises Scandinavian Biogas Fuels International AB (publ) on their successful placement of a SEK 200 million four-year senior secured bond
Pareto Securities has advised Scandinavian Biogas Fuels International AB (“Scandinavian Biogas”), one of Sweden’s largest private producers of biogas with a strong presence in the Stockholm area and 4 facilities in operation, on their successful placement of a four-year SEK 200 million senior secured bond. The proceeds from the bond issue will be allocated towards partial financing of a new biogas production facility in Skogn, Norway (Biokraft AS), partial refinancing of outstanding debt, to finance an investment and optimisation programme to enhance the group’s production capacity and profitability, as well as to facilitate Scandinavian Biogas’ continued expansion in the Nordics.
The bonds, maturing in February 2020, will bear a floating coupon of 3 months Stibor + 9.75% (paid quarterly) and the terms include an equity interest rate adjustment effectively reducing the coupon following one or more equity injections. Listing of the bonds on Nasdaq Stockholm is intended to take place within 30 days of settlement.
The transaction was successfully placed among predominantly Swedish investors with additional participation from other Nordic countries as well as significant demand from continental Europe. Altogether, approximately 40 investors participated in the issue.
“We are pleased to secure financing for Scandinavian Biogas’ strategically important expansion into the Norwegian market and to support continued growth in our core markets. Our strategy is to continue to build from our dominant position in Sweden, proceeding from our in-house developed HOLD-Technology™ which makes us a leading force in efficient biogas production. By securing the financing for the continued investment programme and the planned expansion into Norway, Scandinavian Biogas is now executing on its growth strategy aiming to deliver 1 TWh biogas energy on the market by 2020” says Matti Vikkula, CEO of Scandinavian Biogas.
For more information please contact Mats Carlsson, +46(0)8 - 402 52 86
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