ContourGlobal, a KKR’s UK-based independent energy producer that also acts as developer, buyer and manager of generation and storage facilities globally, placed a two senior green bond maturing in 2030. One is worth 500 million euros and pays a 5% coupon whilethe other issuance of 510 million US Dollars has a 6.75% coupon (see here the press release).
The demand of US and European investors exceeded by 4.5 times the available amount for subscription.
ContourGlobal received assistance from Kirkland & Ellis International LLP, Hogan Lovells LLP (Luxembourg), Goldman Sachs International, KKR Capital Markets (Joint Global Coordinators and Joint Physical Bookrunners), BNP PARIBAS, Crédit Agricole Corporate and Investment Banking, HSBC, and Mizuho (Joint Physical Bookrunners and Joint Bookrunners, wheres feasible). Cravath, Swaine & Moore LLP advised the initial investors ha agito come consulente legale per gli acquirenti iniziali. Wilmington Trust, National Trust acted Collateral Agent while U.S. Bank Trustees Limited held a Trustee role.
The company will invest the net proceeds of these issuances in acquiring and developing renewable energy projects aimed at accelerating the decarbonisation of its operations and facilitating the conversion and divestment of the most emissions-intensive assets. Such decisions are part of ContourGlobal broader sustainability strategy that set a zero direct emissions target to achieve by 2040.
Sustainable Fitch carried on the independent appraisal for The Green Bond Framework of ContourGlobal (which includes projects for renewable energy, decarbonization and transition) and provided a Second Party Opinion with “Excellent” rating pointing out that such strategy is compliant with the International Capital Market Association (ICMA) Green Bond Principles 2021. Sustainable Fitch also rated ContourGlobal’s strategy as “Substantial Transition=” highlighting a significant progress in the company’s efforts to achieve Net Zero targets.
Antonio Cammisecra, the ceo di ContourGlobal, said: “The first issue of Corporate Green Bonds in our almost 20-year history underlines our commitment to growth and transformation into a more sustainable independent energy producer. We want to continue investing in renewable energy, battery storage and innovative technologies, delivering value to our stakeholders and supporting the global fight against climate change. I am very pleased with the positive market response to our new strategy and the success of this Green Bonds issue, which reflects our ongoing efforts to engage a broad range of investors committed to a low-carbon economy. This also contributes significantly to the United Nations Sustainable Development Goals (SDGs), in particular number 7 (Affordable and Clean Energy) and number 13 (Climate Action)”.
KKR acquired ContourGlobal in December 2022 after a delisting from London Stock Exchange (see here the press release). The fund launched a public offer on the ground of a 1.75 billion GBPs (2.14 billion US Dollars) equity value and a 6.14 billion US Dollars enterprise value.
In 3Q24 the company posted revenues of 1.31 billion US Dollars (1.69 billion in 3Q23), an adjusted ebitda of 606.8 million (693.7 million) (see here the 3Q24 results of Contour Global Holding). In 2023, revenues amounted to 1.95 billion with an adjusted ebitda of 919 million. June 2024 net fiancial debt amounts to 3.3 billion (see the June 2024 results presentation for bondholders). In November 2023, ContourGlobal Solar Holdings (Italy) carried on a 203 million euros refinancing for its whole portfolio of photovoltaic plants with a facility paying a coupon of 6M Euribor plus a 1.5% spread and maturing in December 2030. In 1H24, the company increased such a financing of a further 62 million euros.
ContourGlobal owns 18 Italian photovoltaic plants with a gross capacity of 65 MW thate became operative between 2007 and 2013. Each of them linked to the Italian electric energy grid.
