Greenvolt agrees €200M convertible bond sale with US fund manager KKR
The bonds, which will not being admitted to trading on the Euronext Lisbon market, have an annual interest rate of 4.75%. They mature in seven years.
Portugal-based renewables energy company Greenvolt has agreed with US global investment fund manager Kohlberg Kravis Roberts (KKR) to issue bonds worth €200 million, maturing in seven years, that can be converted into shares in the company.
“Greenvolt – Energias Renováveis and a global infrastructure fund managed by KKR have reached an agreement for the subscription by KKR’s investment fund of a €200 million bond issue, which can be converted into shares,” the company said in a statement.
According to the same statement, this investment will allow for a “faster growth” of Greenvolt, also enhancing new business opportunities.
The planned issue of convertible bonds is subject to approval by shareholders at their next general meeting, to be held on 31 May.
“This is an extremely important operation for Greenvolt, in that we see in KKR not only an investor that recognises the company’s potential, but also a partner that believes in the strategy we have defined, and at the same time it will enable us to accelerate even more the fulfillment of our commitments,” the Greenvolt statement quotes the company’s CEO, João Manso Neto, as saying.
The bonds, which will not being admitted to trading on the Euronext Lisbon market, have an annual interest rate of 4.75%. They mature in seven years and there is the possibility of converting them into Greenvolt ordinary shares after three years.
Converting the bonds into shares will cost €10 per bond, plus a premium of about 25% above the weighted average price of Greenvolt shares quoted in the 47 days prior to entering into the agreement.
“We are very excited to make this partnership that will support our strategy of creating value in the renewable energy segment by delivering 100% green energy across multiple technologies in multiple geographies,” the statement quotes KKR partner Vincent Policard, as saying. “We see a great opportunity for Greenvolt in biomass, large-scale wind and solar power and distributed generation, and this investment is aligned with KKR’s commitment to take further steps towards the important energy transition.”
KKR is described by Greenvolt as a “leading global investment firm offering alternative asset management as well as capital market and insurance solutions.”