Arctic Green Energy completes $150m equity & debt funding
Geothermal Installation, Xian Yang, Shaanxi Province, China (source: Sinopec Green Energy Geothermal Development)
Alexander Richter
26 Apr 2018
Icelandic-Chinese Arctic Green Energy, developer of geothermal district heating projects in China, completes USD 150 million equity and debt funding with Chinese investors.
Arctic Green Energy has completed new funding with its long-time partner CITIC Capital (via the CITIC Kazyna Investment Fund) and welcomes China Everbright as a new shareholder. The funding from this round will be used to finance the company‘s growth strategy as well as to refinance existing debt.
- An early investor since May 2015, CITIC Capital has exercised its conversion rights to acquire direct equity of USD 30 million in Arctic Green Energy;
- China Everbright Limited has purchased shares and an exchangeable bond issued by Arctic Green Energy for a total of USD 70 million;
- The above funding is in addition to the recently announced USD 50 million loan facility provided by the Asian Development Bank, which has now been completed.
Arctic Green Energy‘s strategy is to create zero emission cities through renewable resources, technology and infrastructure. Currently, most of its projects are based on geothermal as the primary energy source. Cities consume over 70% of all energy generated globally. A large portion comes from burning fossil fuels for heating and cooling causing fast escalating air pollution and deteriorating public health. Geothermal is a baseload, profitable renewable energy and the best response to air pollution and emissions while providing people with a clean, renewable and less expensive option than coal heating.
Mr Haukur Harðarson, chairman and founder of Arctic Green Energy, will remain the company‘s majority shareholder, with CITIC Capital and China Everbright holding significant minority stakes.
“The completion of this USD 150 million financing round is a significant step for Arctic Green Energy. Firstly, we have elevated our financial strength to support the continued growth of the company. Secondly, we are refinancing existing funding structure at improved terms and thirdly, but most importantly, we are welcoming two new shareholders that bring a significant strategic value to the firm. CITIC Capital has been an investor in Arctic Green Energy since 2015 and we highly value the relationship and trust built with them during the past three years. Furthermore, we welcome China Everbright to broaden the investor group to strengthen its ties with China, and build on this success in other markets. CITIC Capital and China Everbright are two global investment firms with strong roots in Asia that have special focus on clean energy and will now.
Source: company release by email
