INVL Renewable Energy Fund I completes EUR 8 million bond offering via REFI Energy as issue is 1.7 times oversubscribed

The INVL Renewable Energy Fund I managed by INVL Asset Management, the leading alternative asset manager in the Baltics, successfully completed an EUR 8 million public offering of bonds through REFI Energy, a company it owns. The issue was 1.7 times oversubscribed as 445 retail and institutional investors in the Baltics acquired the debt securities.

Orders for EUR 13.4 million were received from a total of 668 investors. The size, quality and diversity of the orders enabled REFI Energy to set the annual interest rate at 8% – the midpoint of the specified range. The bonds’ fixed rate of interest was determined by auction in the range of 7.5%-8.5%.

“We’re grateful to investors for their trust in the fund’s investments in renewable energy. The money that’s been raised will allow us to reduce borrowing costs by refinancing previously issued securities and to carry out our solar park construction projects in Romania and Poland,” says Liudas Liutkevičius, Managing Partner of the INVL Renewable Energy Fund I.

“It is nice to see how the issuer was welcomed by both institutional and retail investors. The issue stood out for its popularity among capital market participants, something that continued throughout the entire offering period and made it possible to set the interest rate in the middle of the offered range,” says Eglė Džiugytė, Head of Markets at Šiaulių Bankas.

The EUR 8 million issue of bonds has a 2.5-year maturity. Interest will be paid to investors quarterly. The INVL Renewable Energy Fund I provides guarantees to all holders of the bonds.

The company owned by the INVL Renewable Energy Fund I conducted the offering of bonds to investors from 4 February to 17 February. The manager and distributor of the public bond offering is Šiaulių Bankas. The certified advisor to the issuer is the law firm TGS Baltic, while the bondholders’ trustee is the company Audifina. Within 3 months of the completion of the offering, the debt securities will be listed on the First North alternative securities market operated by Nasdaq Vilnius.

The fund’s company REFI Energy raised EUR 3.5 million from investors in late June 2023 in a private placement of 2-year 9.5% fixed-rate bonds. In September of the same year, the company entered the public bond market and raised EUR 4.5 million in a public offering of bonds with the same maturity. Those bonds, offered only in Lithuania, have a yield of 10%. Both issues were carried out under the General Terms and Conditions for EUR 8 million of REFI Energy Bonds.

The INVL Renewable Energy Fund I is focusing on the Polish and Romanian markets, where the fund’s managers see big growth potential. Total capacity of the fund’s portfolio of projects in development in these markets is 388 MW.

In Romania, the fund is investing in projects for 8 solar plants with a combined capacity of 356 MW. In Poland, it is developing solar park projects with over 32 MW of capacity. Investments in the projects in Romania and Poland are expected to exceed EUR 258 million. Construction of all the solar parks in those countries should be completed by the end of the first quarter of 2027.

To date the INVL Renewable Energy Fund I has raised EUR 73.9 million from investors through investment units and bonds.

About the INVL Renewable Energy Fund I

The 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 more than EUR 1.6 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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