Sonae Capital is moving ahead with the issuance of 41 million green bonds – bonds

Sonae Capital has just contracted its first sustainable financing line, the €40.8 million “green bond” issuance.

The operation was carried out by Sociedade de Iniciativa e Utilização Florestais – Energia, owned by Capwatt, a subsidiary of the company controlled by Efanor, the holding company of the Azevedo family heirs.

The loan is intended to finance the Mangualde Biomass Plant, which is developed and operated by Capwatt, and it pays Sonae Capital, in a statement sent to newsrooms, Wednesday, October 13.

“Sonae Capital is committed to contributing to decarbonizing the economy and Capwatt has played an important role on this front, specifically in the development of renewable energies. This “green bond” issuance also allows Sonae to strengthen its liquidity position, diversify financing sources and increase average debt maturities” , says Yvonne Teixeira, chief financial officer of Sonae Capital.

This edition, “certified by an independent third party”, is curated by Banco BPI and Banco Empresas Montepio, in private, with a 12-year maturity.

The Mangualde Residual Forest Biomass Plant, which began operating in 2020, represents an investment of nearly €50 million and “uses the best available technologies to produce renewable energy from the biomass of the remaining forests,” Sonae Capital asserts.

Sonae Capital’s investment in the biomass plant, with an electrical capacity of 10 MW, was intended to replace the cogeneration plant, which was operating on the same site.

“The Mangualde biomass plant contributes to the decarbonization of the electricity production sector and the Portuguese industry, and also contributes significantly to the improvement of forest management in the region, thus reducing the risk of forest fires,” stresses the company.

Also according to Sonae Capital, this plant “estimates 300,000 tons of remaining forest biomass annually (no virgin wood consumption), which enhances the circular economy and meets all the thermal energy needs of the Sonae Arauco industrial unit on the same site. Generating an additional 83 GWh A year of decentralized renewable energy.

Capwatt, which promotes integrated power solutions, is located in Portugal, Mexico and Spain, and manages 200 megawatts of electric power, 29% of which is in renewables and 71% in cogeneration.