Pacifico secures 35 million euros

The wind and solar farm operator was able to secure debt capital with the help of a green bond, and thus a fairly new financial instrument.

Pacifico has received a green loan from UBS Asset Management in the amount of 35 million euros through a subsidiary. The financing is via a so-called green bond. This is basically a classic corporate bond, except that it is linked to sustainability criteria. Companies that issue such a bond therefore undertake to invest the money raised exclusively in projects that are climate-friendly, for example. The term of the loan is five years and an interest rate of 4.85 percent has been agreed.

Pacifico intends to use 26 million euros of the capital to refinance existing liabilities. The group intends to use the remaining capital to expand its existing portfolio and finance future acquisitions. "We are proud to be able to implement a private placement of this size with a reputable investor such as UBS Asset Management," said co-CEO Martin Siddiqui. "This private placement demonstrates that as a fledgling company, we are able to grow by leveraging various forms of financing."

Siddiqui and Christoph Strasser took Pacifico Renewables Yield AG public in 2019. The startup is headquartered in Grünwald, Bavaria. The founders buy and operate smaller wind and solar farms across Europe. The start-up went public about two years ago.