- UGE (UGE) will offer C$3M in secured project development green bonds
- Each $1,000 bond carries a coupon of 8 per cent and matures 48 months from the date of issuance
- The company expects the financing to close on April 8, 2022
- UGE develops, owns and operates commercial and community solar projects in the U.S. and strategic markets abroad
- UGE (UGE) is down by 17.86 per cent trading at $1.15 per share
UGE (UGE) will offer C$3M in secured project development green bonds.
Each $1,000 bond carries a coupon of 8 per cent and matures 48 months from the date of issuance.
With each bond, subscribers will receive 70 UGE warrants exercisable at $2.00 for up to 18 months from the date of issuance.
The bonds are secured by solar projects pledged by UGE’s U.S. subsidiary, UGE USA, with a minimum coverage ratio of 150 per cent.
The company may call the bonds at any time after the two-year anniversary by paying one additional month’s interest.
It will use the proceeds for general working capital and project development expenses.
It expects the financing to close on April 8, 2022.
UGE is pursuing the green bond issuance due to its lower cost of capital and increased flexibility compared to previous discussions with a debt provider for a US$15M facility.
“UGE was a pioneer in the issuance of green bonds, with its first issuance in 2018, which served to finance UGE’s first self-financed projects,” said Nick Blitterswyk, UGE’s CEO. “We have already received significant demand, in excess of our target raise, and thank those who have expressed interest in our green bond initiative.”
UGE develops, owns and operates commercial and community solar projects in the U.S. and strategic markets abroad.
UGE (UGE) is down by 17.86 per cent trading at $1.15 per share as of 1:34 pm EST.
