First issuance of a green loan to optimize the capital structure and finance future growth

DGAP-News: Pacifico Renewables Yield AG / Key word(s): Financing/Sustainability
28.02.2022 / 07:30
The issuer is solely responsible for the content of this announcement.

Pacifico Renewables Yield AG: First Green Loan Issuance to Optimize Capital Structure and Fund Further Growth

  • Green loan private placement of 35 million euros with a fixed interest rate of 4.85% and a term of 5 years

  • First green financial instrument issued under the Green Finance Framework recently implemented by the Group

  • Refinancing of existing debt demonstrates continued optimization of capital structure

  • Additionally provides funding for building a new portfolio

Gruenwald, February 28, 2022 – On February 26, Pacifico Renewables Yield AG (ISIN: DE000A2YN371) (“Pacifico Renewables”, or the “Group”), an independent producer of electricity from renewable sources, signed, through a subsidiary, a first guaranteed green loan private placement of 35 million euros with UBS Asset Management. The fixed interest rate of the green loan is 4.85% and there is no interest rate exposure. The duration of the financing is five years from the signature with a repayment in fine.

Optimized capital structure

Around 26 million euros will be used to reduce existing debt and optimize the Group’s capital structure. Of this amount, approximately €9.3 million will be used to refinance an existing subordinated debt facility with an interest rate approximately one percentage point higher than the signed private placement. The refinancing of this subordinated debt facility also enables a simplification of the corporate structure resulting in significant cost savings. An additional approximately €16.5 million will be used to refinance the Group’s revolving credit line, thereby optimizing the Group’s refinancing profile by replacing a short-term line with longer-term financing. The fixed interest rate further reinforces the Group’s high sensitivity to interest rates.

Accretive financing of portfolio construction

The rest of the net proceeds will be used to finance the further construction of the Group’s existing portfolio and new acquisitions. Given the Group’s close cooperation with developers and the high visibility on growth opportunities, the Group’s management is comfortable deploying net proceeds in an accretive manner.

Co-CEO Dr Martin Siddiqui summarizes: “We are proud to be able to issue such a large private placement with a reputable investor such as UBS Asset Management. For a young company like ours, this demonstrates our ability to grow by exploiting a variety of sources. financing and to ensure growth for our shareholders by constantly optimizing our capital structure. After having initially financed growth mainly by raising equity, we consider this private placement as a historical transaction for our company, and it demonstrates our ability to effectively fund growth using different sources of capital. With UBS Asset Management, we have found a highly professional partner with whom we are excited to explore other funding opportunities in the future.”

Alessandro Merlo, Head of Investment, Infrastructure Debt at UBS-AM REPMsaid, “Our investment in Pacifico Renewables represents an exciting opportunity for UBS-AM to fund its ambitious expansion plans, aiming to more than double production capacity in the coming years, and we look forward to supporting Pacifico Renewables in this adventure. The transaction also highlights the broader demand we are seeing in infrastructure markets for investments to support expansion and meet sustainability goals, and we look forward to announcing further transactions in this space at the future “.

First issue under the Group’s new Green Finance Framework[1]

Green finance instruments that may be issued under the Green Finance Framework (the “Framework”) include (among others) bonds, private placements and loan facilities. The Framework defines the use of products by the Group, including its eligibility criteria, product management, evaluation and selection criteria as well as its commitments in terms of annual reporting and external verification. Proceeds from green finance instruments issued under the framework will only be invested in projects that are fully aligned with the ICMA Green Bond Principles[2] and EU taxonomy[3]. The Group has set up a Green Finance Committee which will select and assess projects likely to be added to its portfolio of eligible projects. Finally, the Group will publish annual allocation and impact reports on its website in order to keep stakeholders informed of the actual use of revenues. The award report will be independently verified by a third party.

The Group’s Green Finance Framework received a second part opinion by ISS ESG[4] which found that Pacifico Renewables’ green finance framework is fully aligned with both the ICMA Green Bond Principles and the EU Taxonomy.

“Having successfully completed several equity financings in the recent past, we are proud to see that our first green debt raising has been well received by debt investors. This demonstrates confidence in our business model and the future growth potential for equity and debt investors.We are also delighted to be able to use our new green financing framework for the first time with this green debt issuance.Finally, the fact that we have been able to issue a green instrument aligned with ICMA’s Green Bond Principles and EU Taxonomy, as verified by ISS ESG, shows that our decision to focus on sustainability from the start has paid off,” says Christoph Strasser, co-CEO.

ABN AMRO acted as Sole Arranger and Sole Placement Agent/Green Structuring Advisor and Linklaters LLP provided legal advice to Pacifico Renewables in connection with the financing.

About Pacifico Renewables Yield AG

Pacifico Renewables Yield AG is an independent power producer listed on the open market of the Düsseldorf Stock Exchange with additional requirements (Primärmarkt) (ISIN: DE000A2YN371) with the aim of building a gradually growing portfolio of power generation facilities from renewable sources. With operational wind and photovoltaic power plants spread across Europe, the Company offers a clear and diversified profile with stable and predictable revenues.


This announcement does not constitute an offer or a solicitation of an offer to buy securities of Pacifico Renewables Yield AG or any of its subsidiaries. The titles have already been sold.

This announcement may contain certain forward-looking statements, estimates, opinions and forecasts regarding the future business condition, earnings condition and results of Pacifico Renewables Yield AG (“forward-looking statements”). Forward-looking statements can be identified by words such as “believe”, “estimate”, “anticipate”, “expect”, “intend”, “will” or “should” and their negation and variations similar or comparable terminology. Forward-looking statements include all matters that are not historical facts. Forward-looking statements are based on the current opinions, forecasts and assumptions of the board of directors of Pacifico Renewables Yield AG and involve important known and unknown risks and uncertainties. Therefore, actual results, performance and events may differ materially from those expressed or implied by looking at the statements. The forward-looking statements contained herein should not be construed as guarantees of future performance or results and are not necessarily reliable indicators of whether or not such results will be achieved. The forward-looking statements contained in this press release speak only as of the date of this publication. Pacifico Renewables Yield AG will not update the information, forward-looking statements or conclusions contained in this release in light of subsequent events or circumstances, nor will it reflect subsequent events or circumstances or correct any inaccuracies that arise after the date of this release as a result of new information, future developments or otherwise, and the company assumes no obligation to do so. The Company assumes no responsibility for the realization of any forward-looking statements or assumptions contained herein.

[1] Pacifico Renewables Investor Relations

[2] ICMA Green Bond Principles

[3] EU taxonomy


28.02.2022 Broadcast of a Corporate News, transmitted by the DGAP – a service of EQS Group AG.
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