Company, owned by INVL Renewable Energy Fund I successfully placed EUR 4.5 million bond issue

REFI Energy, a company owned by the INVL Renewable Energy Fund I, which is managed by INVL Asset Management and invests in renewable energy projects, successfully placed all EUR 4.5 million fixed-rate bonds in its first public offering of debt securities. The issue was oversubscribed, with demand exceeding the supply 1.5 times, where the bids from more than 250 institutional and retail investors from Lithuania were submitted.

"The success of this public bond offering underscores investors’ confidence in the fund’s investments in renewable energy. We will use the money thus raised for the solar power plant construction projects that the fund is developing,” says Liudas Liutkevicius, Managing Partner of the INVL Renewable Energy Fund I.

The bonds that the fund’s company REFI Energy placed among private and institutional investors in Lithuania have a yield of 10%. The bonds have a maturity of up to 2 years with a right for the issuer 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 EUR 4.5 million issue of bonds 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 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 ran from 8 September to 18 September inclusive. The manager and distributor of the public bond offering was Šiauliu Bankas. The law firm TGS Baltic is a legal and certified advisor to the issuer. The bondholders’ trustee is the company Audifina. Within 6 months of the end of the offering, the bonds 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 65.9 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.

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.

The person authorised to provide additional information:
Liudas Liutkevicius, Managing Partner of the INVL Renewable Energy Fund I
liudas.liutkevicius@invl.com