The loan was secured through a subsidiary via a private placement with UBS Asset Management. It has a term of five years and a fixed interest rate of 4.85 percent. Of the total €35 million, Pacifico intends to use approximately €26 million to refinance existing liabilities and optimize the group's capital structure. This includes repaying an existing subordinated loan with a higher interest rate. In addition, the startup simplify its corporate structure, which should lead to significant cost savings. The remaining funds from the loan will then be used to finance the further expansion of the group's existing portfolio and future acquisitions.
Martin Siddiqui, Co-CEO of Pacifico, summarizes:
"We are proud to be able to complete a private placement of this magnitude with a reputable investor like UBS Asset Management. This private placement demonstrates that, as a relatively young company, we are capable of growing through various forms of financing and creating added value for our shareholders through the continuous optimization of our capital structure. After initially financing our growth primarily through equity, we view this private placement as a milestone in the development of our company. This transaction demonstrates our ability to efficiently manage growth using various financing instruments. With UBS Asset Management, we have found a highly professional partner for this financing, and we look forward to exploring further opportunities for collaboration with this partner in the future."
And Alessandro Merlo, Head of Investment, Infrastructure Debt at UBS-AM REPM, comments:
"Our investment in Pacifico Renewables Yield AG represents an exciting opportunity for UBS-AM to finance the company's ambitious expansion plans, which aim to more than double its installed capacity in the coming years. We look forward to supporting Pacifico Renewables Yield AG on this journey. The transaction also underscores the broader demand for investments we see in the infrastructure markets to support expansion and achieve sustainability goals. We look forward to announcing further transactions in this area in the future."
Pacifico's Green Finance Framework
With the so-called Green Finance Framework Pacifico has established a framework within which the startup can offer project developers green financing instruments. These include bonds, private placements, and credit facilities. The framework defines Pacifico's use of proceeds, including eligibility criteria, proceeds management, evaluation and selection criteria, and obligations for annual reporting and external validation. Furthermore, the proceeds should only be used for projects that are fully aligned with the ICMA Green Bond Principles and the EU Taxonomy. The sustainability agency ISS ESG has confirmed compliance with these principles.
Christoph Strasser, Co-CEO of Pacifio, says:
"After successfully completing several equity financings in the recent past, we are proud that our first green debt financing was well received by debt investors. This demonstrates that both equity and debt investors have confidence in our business model and future growth potential. We are also pleased that this financing marks the first time we can leverage our newly established Green Finance Framework. Being able to finance ourselves through a green loan that complies with the ICMA Green Bond Principles and the EU Taxonomy, and is verified by ISS ESG, demonstrates that our decision to focus on sustainability from the outset has paid off."
