Aquila Capital is planning to launch a €50m green bond issue to help fund Småkraft’s ongoing growth plan.
Aquila bought Norwegian hydropower operator Småkraft on behalf of its investors in 2015 and subsequently merged with Norsk Grønnkraft in 2017.
The €480bn Dutch pension fund manager APG is the majority shareholder in Småkraft and has recently increased its equity commitment to hydropower to €300m.
Last month, Småkraft announced its plans to reach 2TWh of electricity production annually, with the increase of its run-of-river portfolio coming from market acquisitions and organic growth.
The firm currently operates more than 100 power plants across Norway.
Aquila said following investor meetings and subject to other conditions, a senior secured green bond issue with a volume of €50m and a duration of five years may follow.
The proceeds from the potential bond issue will be used to refinance outstanding debt, to finance new hydropower plants and for general corporate purposes, Aquila said.