Solör Bioenergi Group’s March 2024 debt financing was a clear winner for the award by the same name, with judges impressed by the complex nature of the fundraising.  

The Swedish renewable district heating and biomass company raised SEK22 billion ($2.1bn) in long-term debt with a multi-tiered structure. 

The submission said: “The transaction was intended to enable Solör to access institutional debt markets in addition to the bank market (via European and U.S. private placements) and to provide a flexible long-term platform to support Solör’s M&A-driven growth strategy.” 

The financing package – including refinancing of existing facilities – is structured as: 

• senior common terms agreement
• midco common terms agreement
• junior facility
• capex facility and revolving credit – a total of SEK4 billion 

One judge said: “The complex financing structure at scale and genuinely innovative in bringing platform approach to European district heating.” 

While another said: The complexity of fundraising, with a combination of bank, European private placement, US private placement and credit fund debt and the borrower now well placed to develop its project pipeline shows clear success and market impact.” 

The submission said: “Through the multi-tiered financing, Solör optimized its capital structure, despite a challenging interest rate environment and significantly extended and diversified its maturity profile to limit future refinancing risks. This was partially enabled by obtaining an Investment Grade rating on the Senior level, which was essential for attracting institutional investors. The rating not only validated the strength of Solör’s business model but also ensured competitive financing terms that would support its long-term strategic objectives.” 

It continued: “Ultimately, Solör accomplished all its goals of the refinancing: i) Establish Senior Investment Grade CTA platform to support ongoing growth, ii) Diversify funding sources and debt maturity profile, iii) Refinance existing indebtedness and refresh liquidity for ongoing operations and investments, and iv) Reaffirm solör’s commitment to best-in-class ESG practices.” 

Solör Bioenergy is owned by: 

• Nordic Infrastructure, wholly-owned subsidiary of BE Bio Energy Group – 60%
• Polhem Infra – 40% 

Advisers on the refinancing: 

• CIBC – financial 
• Icecapital Securities – financial 
• Kirkland & Ellis – legal to borrower
• Latham & Watkins – legal to lenders