German Pellets GmbH has announced the details of its planned corporate bond. The “Wärme-Wertpapier II” bond (WKN/ISIN: A1TNAP / DE000A1TNAP7) carries a fixed coupon of 7.25% p.a. and has a term of five years. Subscription will commence on 1 July 2013. The issue at an amount of up to EUR 50 million will be targeted at institutional investors and asset managers as well as private investors.
“Our second corporate bond is an invitation to investors to join us on the next step of our journey into the lucrative market for sustainable heat supply. Our first bond, which was issued in 2011, is trading clearly above 100 percent, which underlines investors’ appreciation of our growth strategy,” says Peter H. Leibold, Managing Director of German Pellets GmbH. The global pellets market continues to post double-digit growth rates. High and rising prices for fossil energy sources and high modernisation requirements in the refurbishment of buildings and heating systems will offer further growth opportunities and attractive rates of return for investors. Rating agency Creditreform has assessed the company with “BBB”, Investment Grade Status.
Starting 1 July 2013, investors can subscribe to the new bond directly via their bank or their online broker by sending a purchase contract to the Stuttgart Stock Exchange. Subscription orders from institutional investors should be placed with quirin bank AG, the lead manager and bookrunner for the issue. After the end of the subscription period, the bond will be admitted to the Bondm segment of the Stuttgart Stock Exchange for regular trading.
German Pellets plans to use the proceeds from the issue to develop its international warehousing and logistic system, to expand its business with end customers and to increase the efficiency of its existing production facilities. Generating turnover in excess of EUR 500 million in 2012, German Pellets is the world’s largest pellets producer and trader. The most important output markets are Germany, Denmark, Italy, Austria, Belgium and the UK. Besides wood pellets for the renewable heat market, German Pellets also supplies energy suppliers in Western Europe with wood pellets for the generation of electricity and heat.
A legally relevant prospectus on the “Wärme-Wertpapier II” bond is available free of charge from German Pellets GmbH, Am Torney 2a, 23970 Wismar, and for downloading at www.german-pellets.de/anleihe.