Sonae Capital's first sustainable financing line will fund the development of the Mangualde biomass power plant and "reinforces the company's liquidity position."
Sonae Capital has just contracted its first bond issuance associated with sustainable projects (green bonds) for €40.8 million. The issuance was organised by BPI and Banco Empresas Montepio, with private subscription, and has a maturity of 12 years.
This operation is aimed at financing the Mangualde biomass power plant, developed and operated by its subsidiary Capwatt – present in Portugal, Spain and Mexico, it has 200 MW of electric power under management -, which started operating in 2020 and represents an investment of around €50 million to produce renewable energy from residual forest biomass.
“Sonae Capital is committed to contributing to the economy’s decarbonisation and Capwatt has played a relevant role on this front, namely in the development of renewable energies. This green bond issuance also allows Sonae Capital to strengthen its liquidity position, diversifying funding sources and increasing the average maturity of the debt,” says Ivone Teixeira, CFO.
In a statement, the company controlled by Efanor, the holding company of the Azevedo family, highlights that the Mangualde biomass power plant “contributes to the decarbonisation of the electro-production sector and the Portuguese industry, having also an important role in optimising forest management in the region and, consequently, in minimising the risk of forest fires”.
This plant annually uses around 300,000 tonnes of residual forest biomass, “promoting the circular economy and meeting all the thermal energy needs of Sonae Arauco’s industrial unit in the same location and generating an additional 83 GWh/year of decentralised renewable energy”.