Sun Investment Group is launching 8 million EUR 2-year public bond issue
The solar energy project development company group Sun Investment Group (SIG) is launching a public two-year bond issue, aiming to raise up to 8 million euros and offering investors an annual interest rate of 11.5%. Full project information.
| Tranche size | Maturity | Coupon rate | Coupon payment rate | Minimal investment sum | Distribution dates |
| 8 M EUR | 2 years | 11.5% | Semi-annual | 1 000 EUR | 4th – 22th November, 2024 |
Register to project presentation | Zoom platform | Nov. 8 10AM
The bond issuance is organized and conducted by Lithuanian investment banking company Orion Securities. The bond distribution will start on the 4th November and continue until the 22nd November. Both private and institutional investors can participate by submitting investment applications through banks and brokerage companies in Lithuania, Latvia and Estonia.
The minimum investment amount is 1,000 euros, and interest will be paid semi-annually. No later than three months after issuance, the bonds will be listed on the alternative First North market. Owners of bonds issued by SIG in 2023 will have the opportunity to exchange their holdings for the newly issued bonds in a simplified process.
The funds raised will be allocated for new project development, working capital, and refinancing of existing bonds.
The bonds are secured by a primary lien on special-purpose companies (SPVs) developing a portfolio of ~380 MW solar power plants in Italy, currently valued at over 22 million euros.
Deividas Varabauskas | Sun Investment Group CEO
“We currently have 300 MW of ready-to-build (RTB) solar power plants that we plan to complete by mid-2026, with construction of the first plants finishing by the end of this year. The bond issue provides us with the opportunity to ensure smooth project implementation and helps diversify working capital sources. The immediate goal is to complete construction of the 300 MW projects and sell some of them by early 2026. However, we always keep in mind the fundamental criteria for our business: to ensure sustainable capital and value growth without taking unjustifiable risks and we are consistently preparing for the transformation to an independent electricity producer in the medium term,” says Sun Investment Group CEO Deividas Varabauskas.
“The redemption of the issued bonds will be financed using funds planned from the sale of 100 MW of fully completed small-scale projects in Poland, expected to generate more than 80 million euros in revenue for our Group,” comments D. Varabauskas.
Sun Investment Group is a mature development and contracting organization focused on value creation in the strategically important field of renewable energy, particularly in the promising markets of Poland and Italy, where higher electricity prices and greater sunlight provide opportunities for developers to achieve higher profitability and greater operational scale. “We believe that due to the company’s reputation, experience, attractive primary collateral terms, offered returns, and strong financial performance, Sun Investment Group bonds will appeal to a wide range of investors,” states Mykantas Urba, Head of Corporate Finance at Orion Securities.
Mykantas Urba | „Orion Securities“ Head of corporate finance
Of the approximately 3000 MW solar parks being developed by Sun Investment Group, 2300 MW are in Poland, 700 MW in Italy, and less than 20 MW in Lithuania.
Despite no project sales in the past couple of years, the Group’s operations remain profitable on a consolidated level—generating an EBITDA profit of 2.7 million euros in 2023 and 700,000 euros in the first half of 2024.
The Group’s activities include the project above development and solar power plant contracting services for constructing industrial and remote solar power plants in Lithuania, supplied through Eternia Solar. This part of the Group’s business is relatively stable and profitable (generating a net profit of between €1,000,000 to 2,000,000 in the last 3 years), which helps to balance the Group’s cash flow in the short term.
On a consolidated basis, the group is significantly capitalized—as of December 31, 2023, shareholders’ equity was 11.2 million euros, with an equity ratio of 19%.
‘In our view, with interest rates falling and electricity prices remaining relatively high, it is rational to expect solar power plants to become more expensive in the next few years. For these reasons, this year, we are not in a hurry to sell all of the projects under construction, but rather focusing on the construction of the existing projects, attracting construction financing and converting as much of the projects as possible into constructed and operating power plants, thus obtaining the highest possible valuation for the sale of the plants to financial and strategic buyers in the period between 2025 and 2026,’ says D. Varabauskas.
Related documents
Information document | Terms & Conditions | Final terms | SIG consolidated audited financial statements 2023 | SIG consolidated audited financial statements 2022 | SIG consolidated financials statements (period until June 30th, 2024)
How to invest?
Contact the financial brokerage company/bank handling your securities account for the submission of an investment order.
If you do not have an investment services agreement concluded with a financial intermediary, leave your contacts in the provided form and an “Orion” investment consultant will contact you. Otherwise send us an email to: obligacijos@orion.lt
Orion Securities recommends to consult with your financial advisor and evaluate all the risks associated with the financial instrument and/or other circumstances that are significant to you before making an investment decision.
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