Orion successfully distributed Sun Investment Group EUR 8 million bonds
Sun Investment Group, an international solar energy projects development group, successfully concluded its public bond offering with oversubscription, raising EUR 8 million. The bonds will have an annual interest rate of 11.5%, with interest payable semi-annually. The bonds have a maturity of 2 years.
In addition to Lithuanian investors, investors from Estonia and Latvia, who are already familiar with the company from the 2023 bond issue, actively participated in the placement.
Bond allocation was performed giving priority based on the time of the receipt of the Subscription Order and Exchange Order. Bond settlement date is Nov 29, 2024. The bonds of Sun Investment Group will be listed on First North (Nasdaq Vilnius) Bond list.
Deividas Varabauskas, CEO of Sun Investment Group, stated “We are developing more than 3 GW of projects in the Polish and Italian markets, for which we are seeking various sources of financing. The funds raised will be used for the development of new projects, working capital and the refinancing of the 2023 bond issue. The redemption will be carried out using funds expected to be raised from the sale of 100 MW of fully built small-scale projects in Poland, which are expected to generate more than EUR 80 million in revenues for our Group.”
According to D. Varabauskas, the successful bond issue indicates not only the investors’ willingness to invest in renewable energy sector, but also their confidence in Sun Investment Group’s strategy and team, as well as in its solid financial performance.
“The successful completion of the construction of the 300 MW projects and the sale of a part of the projects by the beginning of 2026 is the team’s immediate tactical goal, but in the longer term we will continue to invest in the development of early stage projects and the acquisition of projects that have reached the construction stage on the market, while always keeping in mind the fundamental criterion for our business – to ensure sustainable growth of capital and value, without taking unjustifiable risks, and to consistently prepare for the transformation to an independent power producer in the medium term,” said Deividas Varabauskas.
Mykantas Urba, Head of Corporate Finance at Orion Securities, commented “Sun Investment Group’s bonds were attractive to investors because the company 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. These markets are significantly different in size and structure from the Baltics and, due to higher electricity prices and sunshine, allow developers to achieve higher profitability and scale of operations.”
The bond offering was organized and distributed by Orion Securities and legal matters were advised by law firm TGS Baltic.
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