ABO Wind AG Launches 50 Million Euro Green Bond with 7-8% Interest Rate

ABO Wind launches 50M€ green bond to finance renewable energy projects in Germany, Luxembourg, and Austria, offering 7-8% annual interest rate.

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Nitish Verma
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ABO Wind AG Launches 50 Million Euro Green Bond with 7-8% Interest Rate

ABO Wind AG Launches 50 Million Euro Green Bond with 7-8% Interest Rate

ABO Wind AG, a renewable energy company, has launched a new green corporate bond offering with a target volume of 50 million euros. The bond, which has a 5-year maturity, will pay an annual fixed interest rate between 7-8%, to be paid semi-annually. The proceeds from the bond issuance will be used to finance the development and construction of wind, solar, and battery storage projects in Germany, Luxembourg, and Austria, in line with ABO Wind's green bond framework.

The bond offering is open to institutional investors, asset managers, and retail investors in Germany, Luxembourg, and Austria through the Deutsche Börse's DirectPlace platform and ABO Wind's website. The subscription period for the bond started on April 22, 2024, and will end on May 2, 2024, at 12 noon. The final interest rate will be determined after the end of the offer period based on the subscription orders received.

The bond has a denomination of 1,000 euros and will be listed on the Frankfurt Stock Exchange's Quotation Board (Open Market) segment. ABO Wind's green bond framework, which guides the use of proceeds, has been reviewed and approved by an external reviewer to ensure compliance with the Green Bond Principles issued by the International Capital Market Association.

Why this matters: The successful issuance of ABO Wind's green bond will provide significant funding for the development of renewable energy projects, contributing to the transition towards a low-carbon economy. The high interest rate offered reflects the growing demand for sustainable investments and the attractiveness of green bonds as a financing instrument.

In a statement, ABO Wind's CEO said, "The launch of our new green bond demonstrates our commitment to accelerating the deployment of renewable energy and storage solutions. We are confident that this bond will attract a wide range of investors who share our vision for a sustainable future." The company expects strong demand for the bond given the increasing focus on environmental, social, and governance (ESG) investing and the need for climate action.

Key Takeaways

  • ABO Wind launches 50M EUR green corporate bond with 7-8% annual interest.
  • Bond proceeds to finance wind, solar, and battery storage projects in Germany, Luxembourg, Austria.
  • Bond open to institutional, asset management, and retail investors in 3 countries via Deutsche Börse.
  • Bond listed on Frankfurt Stock Exchange, compliant with Green Bond Principles.
  • Bond issuance aims to accelerate renewable energy deployment and attract ESG-focused investors.