The German Pellets GmbH, the world's largest manufacturer and distributor of wood pellets, plans to finance further growth with the emission of a second corporate bond. The Company intends to use this emission to further develop the international warehousing and logistics system, to support the expansion of the retail business and to increase the efficiency of existing productions.
The global pellet market has developed positively since the issuance of the first German Pellets bond in March 2011. The growth rates are in double digits. High and rising prices for fossil fuels, a high energy need for rehabilitation and the political and social will for energy policy and climate protection allow the demand for renewable wood pellet fuel to continue to rise. Wood pellets are used primarily for the production of heat in non-subsidized markets. They can also be used to generate electricity in power plants.
The successful bond issue in 2011 has proven to our company as a good and established financing device. Production capacity has expanded and strengthened our distribution network through targeted acquisitions, says Peter H. Leibold, managing partner of German Pellets GmbH. The company's financial results in 2012 confirm the course. Group sales rose to EUR 519 million, earnings before interest, taxes, depreciation and amortization (EBITDA) rose to EUR 39.6 million (provisional figures).
The bond will be issued in a public offering in Germany, Luxembourg and Austria, as well as in an international private placement in Europe. Details will be known shortly after the submitted prospectus is approved.