Alternative investment specialist Aquila Capital has launched a $56m five-year green bond via Norwegian hydropower operator Småkraft to finance the company’s further growth.
With over 100 hydropower-plants across Norway and an annual energy production of 1 TWh, Småkraft is already the biggest independent operator of small-scale hydropower plants in Europe.
Roman Rosslenbroich, chief executive of Aquila Capital, said: “Green bonds are an attractive instrument to continue driving the European energy transition.”
The additional financing is being secured to drive the company’s goal to double annual production to 2 TWh by 2022.
Specifically, it is planned to purchase four more hydropower plants and to refinance seven that are already owned.
Rosslenbroich added: “Institutional investors increasingly insist on sustainable financing options because they offer more transparency as to how the capital is used at an equivalent risk-return-profile compared to conventional bonds. This is why we view this development not as a short-term trend but as one of the most sensible ways to mobilise the capital required to transform European energy grids. Norway, with its mature and robust hydropower market, therefore lends itself as a natural starting point.”