PolSolar has raised 188 million euros from the sale of a security issued in the framework of the Bond Funding for Growth Scheme (BGS) of the National Bank of Hungary.
PolSolar had offered 174 million euros of the 15- year bonds. Bids reached over 190 million euros. The average yield was 7 %, 71 basis points over mid-swaps.
Scope Ratings assigned the issue a B+ rating, the threshold for BGS participation.
Scope Ratings said PolSolar plans to use the proceeds to build five solar power plants in northeast Hungary with a combined installed capacity of 233.5 MW. The solar power plants must be commissioned by the end of 2023 in order to be eligible for the full tariff available in Hungary’s support scheme.
Two Hungarian private equity funds, Voyager Private Equity Fund and Central European Opportunity Private Equity Fund, are sponsoring the project and have put up 25 % of total investment costs.
Scope Ratings said that the Hungarian National Bank will subscribe the 15-year bond, while commercial investors will subscribe a second issue, up to 20 million euros, that will take place by the end of June 2022.
