An investment in the green senior unsecured fixed coupon corporate bond to be issued by Photon Energy NV
The proceeds will be used to finance the development of solar projects in the Central and Eastern Europe region, exclusively in the EBRD's countries of operation.
ETI score: 60
Competitive: The project will support the development by the company of new renewable energy (RE) capacity in Hungary, Poland and Romania, and will represent the company's first steps in the latter two markets. This new capacity will help increasing the share of private generation and facilitate further the competition in the respective countries' energy market. The project supports a Czech company in its efforts to become a regional independent power producer, demonstrating that this Czech company can credibly built on its prior experience to successfully compete in the international markets.
Green: The Project is 100 per cent GET and will contribute to climate mitigation through the addition of new solar capacity. While it is most likely that the first project to be materialised after the bond issuance would be a 28.6 MW solar in Hungary, the conservative assessment was taken in assessing the CO2 targets. The Bank's proceeds are expected to correspond to the increase in 10 MW of solar capacity. This 10 MW addition will generate 12.4 GWh of electricity annually, contributing to 3.96 thousand tonnes of CO2 savings annually.
PHOTON ENERGY NV
Photon Energy NV is incorporated in the Netherlands with major substances in the Czech Republic. This is a regional renewable developer with an operating portfolio of 89.3 MW of small-sized solar PV power plants in the Czech Republic, Slovakia, Hungary and Australia and an ambition to become a regional independent renewables producer. The Company has a pipeline of 430+ MW solar projects in the Central and Eastern Europe region.
EBRD Finance Summary
- Financing structure: the EBRD financing is expected to effectively 'close the funding gap' and support a successful book-building process.
- Resource mobilisation: the EBRD's involvement in a debt capital market transaction provides comfort to other investors and further widens market participation.
- Standard-setting: Client seeks use of the EBRD expertise on higher inclusion, gender standards and/or equal opportunities action plans. Equal opportunity practices of the Company will be assessed through the adoption of the gender-based violence and harassment (GBVH) policy at the international level.
Environmental and Social Summary
Categorised B (2019). Medium-High risk rating. Given the capital market transactions restrictions the ESDD was undertaken in-house and included review of the Prospectus, Issuer's Green Financing Framework, SPO by imug rating, Germany, replies to the EBRD Supply Chain Questionnaire as well as assessment of the Company's corporate E&S management systems. The SPO report rated the Framework as Very Good and issued in accordance with the Green Bond Principles (GBP) published by the ICMA (June 2021). In particular, supply chain risks associated with the sourcing of PV panels will be addressed via update of existing Procurement Policy and development of specific contractor due diligence procedures by the Company. The ESAP contains requirements to adhere to the EU guidance on due diligence for businesses to address the risk of forced labour in their operations and supply chains (2021) and seek third party audits of the solar panels suppliers when it becomes possible. Additionally, the ESAP requires future projects to be subject of E&S risk assessment in terms of sites sensitivities, e.g. protected areas such as Natura 2000 sites, and follow EIA process for over 50MW projects. The ESAP also incorporates requirements for the future reporting and monitoring of the portfolio performance via sustainability and CSR reports made public. The ESAP has been finalised and agreed with the Client. The Project is eligible as 100% GET and is PA aligned for mitigation.
Technical Cooperation and Grant Financing
Company Contact Information
PSD last updated
05 Jan 2022
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