The INVL Renewable Energy Fund I, which is managed by INVL Asset Management and invests in renewable energy projects, is entering the public bond market and offering investors up to EUR 4.5 million euros of fixed-rate bonds through REFI Energy, a company the fund owns.
REFI Energy will offer private and institutional investors in Lithuania nominal EUR 1.000 bonds with a yield of 10%. The bonds are to have a maturity of up to 2 years and give the issuer a right to redeem them earlier, paying an additional 1% if redemption is 9 to 12 months before maturity, an additional 0.5% if redemption is 6 to 9 months before maturity, and no premium if redemption is within 6 months of the maturity date.
The bonds to be issued will be combined with previously issued REFI Energy bonds (ISIN LT0000407769) according to the General Terms and Conditions for EUR 8 million of REFI Energy Bonds. Under those terms, in late June this year the company raised EUR 3.5 million from investors in a private placement of 2-year 9.5% fixed-rate bonds.
The offering of the INVL Renewable Energy Fund I’s bonds to investors will run from 8 September to 18 September inclusive. The Information Document prepared by the issuer, REFI Energy, can be reviewed and copies of it obtained at the registered office of the company and on the fund’s website. The manager and distributor of the public bond offering is Šiaulių Bankas. The law firm TGS Baltic is a certified advisor to the issuer. The bondholders’ trustee is the company Audifina.
Through this issue of bonds, the INVL Renewable Energy Fund I will finance renewable energy expansion projects in Poland and Romania.
“Construction of the solar power projects in Romania and Poland is picking up speed, so the need for funds to develop the projects is growing. The bond offering is one of instruments for us to raise additional capital for the fund’s investments in renewable energy,” says Liudas Liutkevičius, Managing Partner of the INVL Renewable Energy Fund I.
“This bond offering symbolically links two areas of growing relevance – the need for renewable energy solutions and the ever-increasing popularity of alternative borrowing. We believe utilising the financial markets can help Lithuanian businesses grow faster and more aggressively, and the success stories will inspire businesspeople to use a combination of financing solutions”, says Tomas Varenbergas, Director of the Markets and Treasury Department at Šiaulių Bankas.
Within 6 months of the end of the bond offering, the securities that are issued will be included on the First North alternative securities market operated by Nasdaq Vilnius.
The INVL Renewable Energy Fund I is focusing on the Romanian and Polish markets, where the fund managers see big growth potential. Due to specifics of the electricity generation balance there, the countries need new electricity generation capacities, and their governments are supporting the expansion of renewable energy.
The fund is investing in projects with a total capacity of 33 megawatts (MW) in Poland and 451 MW in Romania. As the projects reach the pre-construction stage, preparations for construction and actual construction works are getting underway both in Poland and Romania. Investments in the portfolio of projects will total up to EUR 350 million, representing a major commitment to the development and promotion of clean energy.
To date the INVL Renewable Energy Fund I has raised EUR 61.4 million from investors.
Renewable energy is an attractive asset class from an environmental, economic and energy independence perspective. Investing in the fund gives investors a chance to diversify their assets geographically, earn an attractive return on investment, and contribute to climate change mitigation.
Important note
This is a promotional announcement for information purposes which does not constitute and cannot be construed as an offer to buy units, bonds or other securities of a collective investment undertaking, an investment recommendation, or investment research, since it has not been prepared in reference to the investment goals, financial situation, or needs of any specific individual investors.
The information in this notice is intended only to give a general understanding and does not constitute complete or comprehensive information. No person may rely for any purpose on the information contained in this notice, its accuracy, correctness, or completeness. The contents of this notice should not be construed as legal, financial or tax advice.
This announcement is not an offer to sell or an offer to buy any securities in any jurisdiction, nor is it a prospectus within the meaning of Regulation (EU) 2017/1129 of the European Parliament and of the Council of 14 June 2017. Any subscription for or acquisition of the securities – bonds – referred to in this announcement may be made solely on the basis of the information contained in the Information Document. The information contained in this notice may change. Before subscribing for or acquiring bonds, persons who read this notice should ensure that they fully understand and accept the risks set out in the Information Document. Neither the information contained in this notice nor its accuracy or completeness may be relied upon for any purpose. Copies of the Information Document can be obtained at the registered office or on a website of the Company, as specified in the Information Document.
This announcement is not and does not in any part constitute advice or solicitation to accept an offer to subscribe for any bonds or other securities, nor shall it (or any part of it) or the fact that it is distributed form the basis of, or be relied upon in connection with, any contract in relation thereto. This notice does not constitute a recommendation of a possible offer. Persons who intend to invest should contact a licensed person who specialises in advising on investment matters. Investors who acquire investments to which this notice relates may be at considerable risk of losing the entire amount invested. The value of the bonds may go down as well as up. Potential investors should consult their own financial or other advisers as to the suitability of the offer for the individual concerned.
About the INVL Renewable Energy Fund I
The INVL Renewable Energy Fund I was established on 20 July 2021 by INVL Asset Management as a sub-fund for informed investors. It invests in early- and mid-stage renewable energy projects (solar and wind), including the construction of new power plants, the development and/or acquisition of the infrastructure necessary for the operation of power plants, and effective management of existing power plants in the European Union and member states of the European Economic Area.
INVL Asset Management is part of INVL, the leading Baltic investment management and life insurance group.
About the INVL group
INVL is the leading investment management and life insurance group in the Baltic region. Its companies manage pension and mutual funds and life insurance directions, individual portfolios, private equity, and other alternative investments. Over 300,000 clients in Lithuania, Latvia and Estonia and international investors have entrusted the group’s companies with the management of more than EUR 2 billion of assets. In the business for more than 30 years now, the group has solid experience in managing private equity assets and building market players that are leaders in their respective fields in the Baltic countries and Central and Eastern Europe.