firstgreencapital

Public Offering

Pitch

Invest in a Green Bond with steady cash flow, no development risk and a net return of 4.5%!

First Green Capital is a pure play developer and owner operator of solar PV plants in Germany. Since 2010, First Green Capital has realized multiple solar PV power plants and developed a significant pipeline of solar PV power plants to realize in the next years.

Photovoltaic energy production is efficient and is increasingly so; within the first year of operation, the CO2 emission used to produce PV panels is offset. The German solar PV market outlook is very optimistic by technological innovation and a growing awareness of climate action.

First Green Capital currently holds 5 solar power stations with 6.2 MWp installed and aggregate asset value of around EUR 6.8m. Investment (development) pipeline of around 105MWp (generating electricity for around 35.000 households) with realizations in 4Q2020 and throughout 2021, the bond issues will gear the company for growth, targeting additional installed power of 200 MWp by 2023 and solar asset optimizations will drive long term value.

Interested? Invest now!

Highlights

  • Junior bond of EUR 2.0m and a net coupon of 4.50% per annum, with 10 year linear amortization
  • Solar power stations situated in Germany
  • Awarded the B+ sustainability rating
  • No development risk and steady cash flows

Risks and challenges

In general, the higher the expected return of an investment the higher the associated risk. The offered or expected return on the Junior Green Bond 2020 is dependent on the fulfilment of the debt servicing obligations by the Issuer. There is a possibility that cash flows from operations are lower than expected, affecting the debt service ability of the Issuer, causing a lower return on your investment or even may cause the loss of (part of) your investment. The most likely situations that could occur and could have an adverse effect on the Issuer’s operating result, financial condition and prospects and therefore have a negative impact on the Issuer’s ability to pay interest and redemption on the Bonds as it becomes due, are the following:

(i) the performance of the individual solar power stations, which varies depending on day-to-day solar conditions and technical performance of the solar installations, is lower than expected;

(ii) solar power stations are susceptible to certain failures in day-to-day operations, performance and reliability. Such failures include hardware failures, brownouts, blackouts, accidents and injuries, and may influence the performance of the solar power stations and;

(iii) the activities of FGC and the Issuer are predominantly concentrated in and aimed at the German market and subject to a significant degree of regulation. There is a risk that if contracts or other arrangements subject to policies and regulations from governmental authorities are amended, become legally deficient or unenforceable, the returns may be affected. Adverse events in the (German) economy and the functioning thereof may affect strategy, operations, future investment and acquisition potential.

(iv) the Issuer has relative high levels of debt against the assets due to relative high advance rates on bank loans and because the depreciation scheme on solar power stations is larger than the amortization on the bank loans. Relative high leverage is customary for solar projects in Germany. Such leverage presents opportunities for increasing total returns, but it can also have the opposite effect of increasing losses or risk of default on debt servicing obligations.

Provisional conditions and collateral

Provisional conditions and collateral
The Issuer has not provided any collateral or guarantees in connection with the Bonds. The Bonds are junior unsecured. For the avoidance of doubt, there is no senior ranking debt in the Issuer, but the Bonds are de facto structurally subordinated to senior secured debt at the level of the assets (in the individual SKWs), but – for the avoidance of doubt - not contractually subordinated to any debt at the level of the Issuer. However, the shareholder loan with its accrued interest will rank behind the Bondholders. Payments to Bondholders have therefore precedence over payments to shareholders. Green Solar BV confirmed that the shareholder loans given by it will rank behind the Bondholders. Payments to Bondholders have therefore precedence over payments to shareholders. Moreover, the Issuer confirms that it will hold existing cash reserves accounts of no less than EUR 730.000 and that payments to shareholder loans are only allowed if the DSCR is no less than 1,05.

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Fundraise details

Funding goal €2,000,000.00
Fixed price €100.00
Minimum investment €500.00
Maximum investment €2,000,000.00
Interest 4.50%
Duration 120 months
Opening date September 4 2020
Closing date October 26 2020

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