Arctic Green Energy raises USD 150 Million in equity and debt funding.
Arctic Green Energy, a Reykjavik, Iceland-based developer and operator of profitable green energy projects, announced the completion of new funding with its long-time partner CITIC Capital (via the CITIC Kazyna Investment Fund) and welcomes China Everbright as a new shareholder.
The funding from this round will be used to finance the company‘s growth strategy as well as to refinance existing debt.
An early investor since May 2015, CITIC Capital has exercised its conversion rights to acquire direct equity of USD 30 million in Arctic Green Energy. China Everbright Limited has purchased shares and an exchangeable bond issued by Arctic Green Energy for a total of USD 70 million.
The equity funding is in addition to the recently announced USD 50 million loan facility provided by the Asian Development Bank, which has now been completed.
Arctic Green Energy, led by Haukur Harðarson, chairman and founder, wants to create zero emission cities through renewable resources, technology and infrastructure. Currently, most of its projects are based on geothermal as the primary energy source. Cities consume over 70% of all energy generated globally. A large portion comes from burning fossil fuels for heating and cooling causing fast escalating air pollution and deteriorating public health. Geothermal is a baseload, profitable renewable energy and the best response to air pollution and emissions while providing people with a clean, renewable and less expensive option than coal heating.