Deal details: The bonds, registered at Interbolsa, were subscribed by Copenhagen Infrastructure Partners (CIP) and GIC. A $270mn share of the raised proceeds will be used to construct the 762 MW first phase of the 1.3 GW Golden Plains wind farm, while the remaining will be used to bring ~4 GW of onshore wind and other renewable energy projects to commercial operation across several OECD jurisdictions comprising UK, Australia, Spain, Portugal and France.
Issuer details: Established in 2019 under the Impala SAS Group, TagEnergy operates with strategic backing from prominent French private equity (PE) firms, Mirova and Omnes, who hold minority stakes in the company. TagEnergy adopts an investment approach focused on early-stage project entry, leveraging its expertise to enhance project value throughout its lifecycle. The company's long-term strategy involves maintaining majority ownership in the projects it undertakes.
Deal rationale: With the financing, TagEnergy has secured the capital to advance the $2bn phase of its flagship Golden Plains wind farm, which began construction in Apr’23 and is expected to achieve commercial operation in 2024. Despite the absence of long-term power purchase agreements (PPAs) with investment-grade utilities or corporate customers, the company successfully raised ~$1.3bn from reputable banks, including Mizuho Bank, KfW, and Clean Energy Finance Corporation, in Nov’22. This current financing, combined with the proceeds from the previous sale of a 15% stake in the project to Ingka Investments in Feb’23, enables TagEnergy to progress the project towards commercial operation without the need for further tapping into the expensive debt market, which has posed challenges for renewable developers worldwide. Moreover, the bond issue proceeds will also support the company's advancement of its global renewable pipeline, including four Battery Energy Storage System (BESS) facilities totaling 169 MW in the UK, which have recently secured financial close
The above analysis is proprietary to Enerdatics’ energy analytics team, based on the current understanding of the available data. The information is subject to change and should not be taken to constitute professional advice or a recommendation.
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