€300 Million Deal Between Nordic Solar and EIG Will Boost Growth and Increase Portfolio Fivefold – EQ Mag
Danish solar energy company Nordic Solar, which develops, builds, and operates solar parks in Europe, has signed an agreement with US private equity firm EIG on a flexible credit facility totaling approximately DKK 2.2 billion (EUR 300 million). In doing so, EIG makes capital available to Nordic Solar which will help the company achieve its ambitious growth targets of a more than fivefold increase in the production capacity of its operational portfolio by 2025. Today, Nordic Solar has 358 MWp in operation and a goal of 2 GWp in operation around the end of 2025.
The new flexible facility will allow the company to draw down capital as the need for funding arises. The majority will be made available for construction costs to support the funding requirements of the company to complete the construction projects covered by the growth plans. A portion will also be available to fund investment in new project opportunities. In addition, the funds may be recycled into future projects.
Besides the target of more than a fivefold increase in its operational portfolio by 2025, the company expects to double its development portfolio, which today totals just under 1.8 GWp. The credit facility will thus help provide the capital resources for investment in new projects at the same time as the current development portfolio of 1.8 GWp is being constructed.
Attractive Deal with Strong Capital Partner
Chairman of the Board of Directors of Nordic Solar A/S, Christian Sagild, calls the agreement between Nordic Solar and EIG an attractive arrangement providing unique opportunities.
“The agreement between Nordic Solar and EIG is highly attractive and provides the company with unique opportunities in terms of realizing its strategic growth targets. EIG is a strong capital partner and is highly experienced in Nordic Solar’s area of operation. As EIG has extensive experience in renewable energy over the past thirty years, Nordic Solar will benefit from the considerable and valuable experience that EIG has gained in the sector. They have a global footprint in more than 40 countries and are therefore a good match for Nordic Solar’s international profile,” says Christian Sagild, Chairman of the Board of Directors at Nordic Solar.
With this agreement, Nordic Solar is ready to accelerate the development of solar park projects and the realisation of its strategic growth targets towards 2025, which will help strengthen the production of renewable energy. Including an increased focus on ESG targets.
“We are very much looking forward to the cooperation with EIG, which, in addition to the credit facility and the potential for value added and realisation of Nordic Solar’s strategic objectives, includes a strong collaboration on the development of more renewable energy focused on ESG. EIG brings valuable experience into the collaboration, which will support Nordic Solar’s ongoing efforts in the field, and we therefore consider the collaboration a tremendous asset,” says Nikolaj Holtet Hoff, CEO of Nordic Solar.
In cooperation with the investment bank Carnegie, Nordic Solar has for some time been looking for opportunities to raise additional capital to the company in an attempt to accelerate solar energy production in line with the company’s strategic growth targets, and has arrived at the solution considered to be most advantageous to the company’s shareholders by both the Board of Directors and Management.
“Our focus has for a while been on entering into a collaboration with a strong capital partner. One that could both help ensure the capital base for us to achieve our ambitious goals and, at the same time, be the best partner in finding the optimum solution for our shareholders. It is our clear belief that we have now found both in our cooperation with EIG,” says Nikolaj Holtet Hoff.
EIG Looks Forward to Realising Nordic Solar’s Potential
As a capital partner and experienced energy investor, EIG also looks forward to cooperating with Nordic Solar.
“Nordic Solar is a leading renewable platform with a proven management team, and we look forward to providing flexible capital to help drive significant growth, accelerate the development of utility scale infrastructure in Europe and realise the company’s full potential. This investment further strengthens our commitment towards reaching our global climate ambitions and advancing the energy transition.” says Walid Mouawad, Managing Director at EIG.
Carnegie Thrilled That Nordic Solar Can Now Accelerate the Expansion of Solar Energy
Carnegie is proud to have contributed to Nordic Solar’s access to funding from one of the world’s largest investors in energy infrastructure. The transaction marks the latest in a long line of Carnegie transactions in the renewables area.
“With the capital contributed by EIG, Nordic Solar has managed to establish a flexible credit facility that enables significant acceleration of Nordic Solar’s growth journey while contributing to the green transition of more solar energy. We look forward to following Nordic Solar and EIG in the years to come,” says Jacob Bastholm, CEO of Carnegie Investment Bank, Denmark.
About Nordic Solar A/S
Nordic Solar is a Danish solar energy company which develops, builds and operates solar parks on an industrial scale across Europe. Since its establishment in 2010, the need and the market for green energy have increased sharply, and Nordic Solar intends to play a key role in the green transition. The company is owned by approx. 700 shareholders and employs more than 80 employees. Today, Nordic Solar operates solar parks with a total capacity of 358 MWp across Europe and has a portfolio of development projects of almost 1.8 GW.
About EIG
Since 1982, EIG has been a leading institutional investor in the global energy industry. EIG specialises in private investments in energy and energy-related infrastructure on a global scale. During its 41 years, EIG has committed USD 44 billion to the energy industry for more than 400 projects or companies in 42 countries on six continents. EIG’s clients include many of the leading pension companies, insurance companies, endowment funds, foundations and sovereign wealth funds in the United States, Asia and Europe. EIG is headquartered in Washington, D.C., with offices in Houston, London, Sydney, Rio de Janeiro, Hong Kong and Seoul.
About Carnegie
Carnegie is a leading Nordic investment bank, which for seven years in a row (2016-2022) has been elected the leading Nordic corporate finance advisor by Kantar Sifo Prospera. In Denmark, financial advice is offered in the areas of investment banking (corporate transactions), securities (analysis and trading in shares, mainly Nordic) and wealth management. Carnegie is a partner to a wide range of Danish and foreign institutional investors, businesses and private people. Carnegie Investment Bank, Denmark, is part of the Carnegie group with offices in Sweden, Norway, Finland, England and the United States. The group’s headquarters are located in Stockholm.
