Estonia: Aidu Wind Farm issues green corporate bond
Aidu Wind Farm issues a EUR 150 million green bond to be listed on the Frankfurt Stock Exchange. The 12-year green bond would be used to finance the completion of Aidu Wind Farm by 2025, which already has a fully developed and approved wind farm (100 MW) in north-eastern Estonia.
Aidu aims to support the end of electricity generation from shale oil by 2035 by significantly reducing the use of non-renewable energy sources and imported fossil fuels, the project will lead to energy freedom in the long term. The project is led by Eleon Green AS, an Estonia-based technology innovation company founded in 2007 by entrepreneurs Oleg and Andres Sõnajalg, which focuses on the design and manufacture of multi-megawatt class direct-drive wind turbines.
Aidu will be the final beneficiary of a large government subsidy, which amounts to EUR 53.7/MWh over 12 years. The company benefits from its location in Estonia, whose electricity grid is at the centre of Nordpool, an active and transparent electricity market that allows for physical trading and active risk management. In addition, Estonia is an EU member with a high credit rating (AA-), has a zero corporate tax rate and is considered one of the most digitally advanced countries in the world
The green bond will be structured by UK-based Bedford Row Capital PLC, a global specialist in non-bank bond structuring, and issued by Sustainable Capital PLC, a green bond issuance platform.