INVL Renewable Energy Fund I-managed REFI Blue aims to raise EUR 10 million through a public bond issue

REFI Blue, a company of the INVL Renewable Energy Fund I, seeks to raise EUR 10 million via a bond issue. The fund, which invests in renewable energy projects, is managed by INVL Asset Management, a leading alternative asset manager in the Baltic States. The offering will run from 27 May to 17 June for private and institutional investors in the Baltic States.

The bond yield range is 8-9%, with the specific interest rate to be determined by auction. Interest will be paid to investors monthly. The bonds are secured by a guarantee from the INVL Renewable Energy Fund I. The minimum investment amount is EUR 1,000. The bonds will be redeemed on 22 December 2028.

The funds raised during the REFI Blue offering will be used to refinance short-term loans for a 60 MW capacity solar power park in Dolj county, south-western Romania. The park covers an area of 67 hectares.

“The power park has been built, connected to the electricity grid, and the infrastructure has been tested. The park is selling electricity as part of the operational testing required for licensing purposes. The licensing procedures for electricity generation are currently being finalised for the facility to commence official operations. The Romanian market, where electricity consumption is 4-5 times higher than in Lithuania and prices are among the highest in the EU, confirms the strong demand for this type of energy project,” says Liudas Liutkevičius, Managing Partner of the INVL Renewable Energy Fund I.

According to him, the bond issue will refinance the project’s short-term bank loans, thus ensuring sustainable and longer-term financing for the project.

The bonds are subject to early redemption: if redeemed within 6-12 months of the issue registration, a 1% premium will be applied for investors; after the 12-month period, the bonds will be redeemed without a premium.

The lead manager and distributor for the bond issue is Artea bank. Investors can purchase these bonds via self-service platforms at financial institutions where they hold a securities account. These securities will be eligible for inclusion in an investment account.

The issuer’s Certified Adviser is the law firm Ellex Valiūnas, and the bondholders’ trustee is Audifina. The debt securities will be admitted to trading on the First North alternative market, administered by Nasdaq Vilnius.

The INVL Renewable Energy Fund I focuses its activities on the Polish and Romanian markets, where the fund’s managers see significant growth potential for renewable energy. The fund’s total portfolio of projects under development in these markets has a capacity of 389 megawatts (MW).

In March, the fund signed an agreement for the sale of a 33.3 MW portfolio of solar power plants in Poland. The transaction is structured as a forward sale, where the price is fixed at signing, and the final transfer of ownership will take place once the parks are constructed and operational. Immediately after signing the agreement, the fund sold 14 MW of already operational projects.

In Romania, the fund has invested in four solar power projects with a total capacity of 356 MW. The fund’s total investments in Romania are expected to exceed EUR 250 million. The construction of all solar parks in Romania is planned for completion by the end of 2028.

The INVL Renewable Energy Fund I has raised EUR 57.9 million in equity capital, and all contractual obligations to investors are being met on time.

Webinar for investors will be held on June 2nd: at 10:00 in English and at 11:00 in Lithuanian.

More information about the bond issue and the offering process can be found on the INVL Renewable Energy Fund I website.

About the INVL Renewable Energy Fund I

INVL Renewable Energy Fund I was established on 20 July 2021 by INVL Asset Management, the leading alternative asset manager in the Baltic States, as a sub-fund for informed investors. It invests in early- and mid-stage renewable energy projects (solar), 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 Invalda INVL, the leading Baltic asset management group.

About Invalda INVL group

Invalda INVL is the leading Baltic asset management group with a track record spanning over 30 years. The group’s companies manage or have under supervision EUR 2.1 billion of assets across multiple asset classes including private equity, forests and agricultural land, renewable energy, real estate as well as private debt. The group’s scope of activities also includes family office services in Lithuania, Latvia and Estonia, management of pension funds in Latvia, and investments in global third-party funds.

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