Advanced SolTech's green corporate bond was subscribed to SEK 170 million

SolTech Energy Sweden AB (publ) subsidiary, Advanced SolTech Sweden AB (publ) ”ASAB” green covered senior corporate bond, SOLT5, was subscribed for SEK 170 million. The issue is the first in ASAB’s green bond framework of up to SEK 1,500 million. The bonds are intended to be listed on First North Sustainable Bond Market and the net proceeds are allocated to finance the acquisition of an existing solar energy portfolio of 24.44 MW, consisting of 17 roof-based solar power plants in China which annually generate about 19% return on invested capital.

ASAB’s business is to finance solar power plants in China that are installed, owned and continuously maintained by the SolTech Group’s Chinese joint venture, Advanced SolTech Renewable Energy Hangzhou Co. Ltd. “ASRE”. After the acquisition, the total portfolio will amount to 92.82 MW and generate annual revenues of approximately SEK 124.5 million with a good profit margin. The organizer of the transaction is JOOL Markets.

Frederic Telander in a comment:
– After three successful green bond issues in 2018, aimed at private individuals, with SOLT5, we have made an entry into the important market of institutional bonds. Here there is considerably more capital available, which boasts good for the future as we have about 25 MW in the order book, about 5 MW under construction and a project pipeline of over 100 MW that we process continuously.

For more information, please contact: Frederic Telander, CEO of Advanced SolTech Sweden AB (publ). Tel: 070-525 16 03. Email: frederic.telander@soltechenergy.com

The information in this press release is such that SolTech Energy Sweden AB (publ) must publish in accordance with EU Regulation No. 596/2014 on Market Abuse. The information was submitted through the above contact person’s agency for publication on January 31, 2019 at. 07:00 CET.

Advanced SolTech Sweden AB (publ) – ASAB
In order to continuously finance the investments in China, the SolTech Group’s parent company and its partners in China, Advanced Solar Power Hangzhou Inc., have formed ASAB. ASAB’s business is to finance solar energy plants in China which are owned and maintained by ASRE or its wholly owned subsidiaries through lending to Group companies. As collateral for borrowed funds, collateral is obtained in underlying assets (solar power plants and accounts receivable). The Company’s Certified Adviser at First North Bond Market is Mangold Fondkommission AB, phone number +46 8 5030 1550. Email: ca@mangold.se. More info at www.advancedsoltech.com

SolTech Energy
Develops and sells aesthetic and building-integrated solar energy products for all forms of real estate – commercial, public and residential. The products are part of a building’s outer shell in the form of a roof or a wall with integrated solar cells for the production of electricity. The Group also conducts operations in China where the business model consists of financing, owning and operating solar power plants on customers’ roofs and selling all the electricity that is produced. The Group also includes the subsidiaries Nyedal Solenergi and the NP Group and the jointly owned companies ASAB in Sweden and ASRE in China. SolTech Energy Sweden AB (publ) is traded on First North at Nasdaq Stockholm under the short name SOLT and has about 15,000 shareholders. The Company’s Certified Adviser is Erik Penser Bank Telephone: +46 8 463 83 00. Email: certifiedadviser@penser.se. More info at: www.soltechenergy.com

About the Chinese initiative
SolTech Energy’s investment in China is conducted in partnership with our partner, Advanced Solar Power Hangzhou Inc joint venture, Advanced SolTech Renewable Energy (Hangzhou) Co. Ltd. (ASRE). The business model consists of ASRE financing, installing, owning and running solar energy installations on customers’ roofs. The customer does not pay for the facility, but instead undertakes to buy all electricity produced by each plant under a 20-25 year contract. ASRE’s current income comes from the sale of electricity to the customers and from various forms of grants per kWh produced. The focus now is on building an order backlog for 2019 and onwards with the goal of having an installed capacity of 605 megawatts (MW) in 2021.

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