Market environment

Solar energy is the largest and, thanks to constant technical developments, the cheapest energy source available to mankind. In 2019, more than 1.8 million solar installations in Germany covered around 8% of gross electricity consumption (Bundesverband Solarwirtschaft e.V.). In the future, photovoltaics will make an important contribution to the future electricity supply and the energy transition in Germany. The Renewable Energy Sources Act (EEG), which was introduced in 2000, promotes the development of electricity generation technologies from renewable sources in order to avoid cost-intensive energy imports and at the same time promote climate protection. Since the state-subsidised feed-in tariffs have been reduced and the individual sizes for photovoltaic plants in Germany have been limited, projects are to be increasingly implemented in individual construction phases in order to be able to maintain and increase margin revenues in the overall view of all construction phases.

Issuer

SUNfarming GmbH specialises in project planning and turnkey construction of photovoltaic plants in Germany and abroad. The company covers the entire project development and EPC (Engineering, Procurement, Construction) value chain: from planning, development and financing to construction, monitoring and maintenance of solar parks. The company has a long-standing customer structure of capital investors, commercial and private power users as well as portfolio-holding project companies of the Schrum-Tauschke Group. Since the company was founded in 2004, the international team of experienced business people, engineers and technicians has already successfully realised a plant output of around 650 MW in Germany and increasingly also in Europe. For around 350 MW in Germany and abroad, SUNfarming currently provides technical services for maintenance, plant monitoring and care. On this basis, the company has been consistently profitable since it was founded.

Investment concept

SUNfarming GmbH has decided to issue a new bond (ISIN: DE000A3MQM78) with a volume of up to 15 million euros, which bears interest of 5% p.a. over the term of 5 years. The proceeds of the issue are earmarked for the project development and pre-financing of almost exclusively German solar projects. The inflowing funds will mainly be used for the project development costs of these projects. The projects are to be implemented in the next two to three years. Based on the current approx. 690 MW of projects in the planning approval process, the bond will be used to secure the further planning costs until construction is ready. The projects for which planning permission has been granted are around 20 individual projects located in the federal states of Brandenburg, Sachsen-Anhalt, Mecklenburg-Vorpommern and Schleswig-Holstein.