Market environment
Solar energy is the largest and, through constant technical development, the cheapest available energy source for mankind. According to the German government, photovoltaics will make an important contribution to the future supply of electricity and to the transition of energy policy in Germany. In 2019, more than 1.8 million solar plants covered around 8% of gross electricity consumption (Bundesverband Solarwirtschaft e.V.). Through the Renewable Energy Sources Act (EEG) introduced in 2000, German legislators are promoting the development of electricity production technologies from renewable energy sources such as photovoltaics in order to reduce economic costs from energy imports and at the same time promote climate protection. Since the government-subsidised feed-in revenues have been reduced and the individual sizes of photovoltaic plants in Germany have been limited, projects are to be increasingly implemented in individual construction phases in order to maintain and increase margin revenues in the overall view of all construction phases.
Issuer
SUNfarming GmbH is a specialist for project planning, turnkey realisation and technical and commercial management of photovoltaic plants in Germany and abroad. In the 16 years of its operation, in which it has achieved consistently positive business results, the company has developed, planned and constructed PV systems on roofs, conversion areas and landfills with a capacity of around 600 MW, and is responsible for the technical management of a further 320 MW. With its services, the company covers the entire project development and EPC (Engineering, Procurement, Construction) value chain, starting with planning, development and financing through construction to monitoring and maintenance of solar parks.
Investment
SUNfarming GmbH has decided to issue a corporate bond (ISIN DE000A254UP9) with a volume of up to € 10 million, with an interest of 5.50% p.a. over the term of 5 years. The proceeds of the issue are earmarked for additional project development and pre-financing exclusively for German solar projects. The funds are to be used to realise the 190.9 MW project pipeline, of which projects with a capacity of 31.3 MW are already contractually secured. The commissioning and acceptance of these projects, which are generally financed by banks, is almost exclusively carried out by German investors and within the Schrum-Tauschke Group. The corporate bond is expected to be included in trading on the Open Market of Deutsche Börse AG.
