Target year 2019 saw COFIDES’s first-time participation in a green bond, issued by Grenergy Renovables. The Company purchased up to 20 % of the issue for M€4.3. The project purposed to finance Grenergy Renovables’s national and international business expansion in renewable, primarily solar photovoltaic- and windfuelled, power plants.
Grenergy Renovables was the first company to issue green debt on the Mercado Alternativo de Renta Fija [Spain’s specialised debt securities market]. For Daniel Lozano, pioneering the launch of such products in Spain was a highly satisfactory experience "that afforded us more visibility on capital markets, introducing us to institutional investors that also acquired company equity when it listed on the continuous market“.
"We have only one planet and cannot afford to continue to deplete its resources"
The company will invest the debt in photovoltaic and wind projects generating 100 % clean power. "At this time we have three wind farms under construction in Argentina and Peru, as well as over 200 MW photovoltaic projects in Chile“, Mr Lozano explains.
For this executive, aligning Grenergy’s green bonds with the Green Bond Principles enhances "investment strength and value“ because the Principles "not only contribute to improving our surrounds, but reduce risks that would not otherwise be envisaged“.
Green bonds have consolidated their status as a financing alternative in recent years. They are a very promising option for broaching climate-related and sustainable projects. Mr Lozano adds that the “bonds“ green credentials attract ESG investors and the greater the demand the lower the cost, for they explicitly ensure financing for sustainable projects that would otherwise go unattended“.
According to Grenergy Renovables’ executive, such growing interest can be attributed to society’s increasing awareness “that we have only one planet and cannot afford to continue to deplete its resources. Fortunately, we have an inexhaustible supply of energy, solar photovoltaic, which happens to be today’s most competitive source, so it will make no sense in the medium term to go on burning fossil fuels“.
"At this time we have three wind farms under construction in Argentina and Peru, as well as over 200 MW photovoltaic projects in Chile“
At year-end 2019 Grenergy Renovables had a headcount of 150 employees. “Oddly, we have fewer employees in Spain than in Latin America, where our activity is particularly intense.“ Nonetheless, "the company headquarters is in Spain and we will begin to grow as we commission future plants“.
In a couple of years Grenergy Renovables will be generating 1.5 GW, sufficient to power one million households with green energy.
Grenergy Renovables’ goal is to have 1.3 GW of green installed capacity, equivalent to the power consumed by one million households, up and running in a couple of years. "We’re naturally working on raising that figure“, Mr Lozano says.
As company strategy is to become a significant actor in all the markets where it operates, "we study entering new markets very thoroughly from the perspective of a medium term engagement. This year we plan to take steps in that direction“.