Midsummer Plans To Issue Green Bonds
Funds will be used to facilitate investments in DUO production, increase R&D and strengthen sales channels
Faced with increasing demand from mainly the US market, fast-growing Swedish CIGS solar firm Midsummer is planning to issue up to €47.6m green senior unsecured bond (SEK 500m). The funds will be used to facilitate investments in DUO production capacity, increase R&D and strengthen the company's sales channels to end consumers.
Midsummer recently reported that revenues in 2018 amounted to €20.9m which is a 90 percent increase from 2017, when revenues were €10.98m. In order to capitalise on the strong momentum, Midsummer has mandated DNB Markets and Nordea as joint arrangers for a potential four year, Swedish Krona (SEK) denominated, senior unsecured green bond issue. The green bond will have a framework of SEK 500m.
The net bond proceeds from the issue will be used in line with the green bond framework dated 22 March 2019 and will include (i) production and distribution of solar panels and solar cells; (ii) production of solar panel manufacturing equipment; and (iii) research and development of solar panels, solar cells and solar panel manufacturing equipment. To confirm that the framework is aligned with the 2018 version of the ICMA Green Bond Guidelines Midsummer has engaged Sustainalytics to provide a Second Party Opinion. DNB Markets and Nordea have acted as structurers of the framework
“Midsummer is firmly established as the leader in the development and supply of energy-efficient thin film solar cells, ideal for the booming urban BIPV (building integrated photovoltaics) market,” said Sven Lindström, CEO, Midsummer. “Considering the strongly increasing demand for our solutions and the still huge global potential for BIPV, we wish to accelerate production capacity, sales channels and growth in order to faster and on a grander scale being able to install large volumes of flexible solar panels on all the markets that we target.”
“This includes evolving our business model from mainly selling manufacturing equipment to also include considerably increased in-house production of solar panels for the end market, and the establishment of a network of contract manufacturers.”
Midsummer's DUO system has taken the position as the most widespread manufacturing tool for flexible thin film solar cells in the world.