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First Bond Issue of Electricity Provider Alive Capital Started Trading

More and more companies choose to obtain financing from the Bucharest Stock Exchange (BSE), including companies in the energy sector. The measure is beneficial as long as the companies in question are required to provide data about businesses and investments, transparency being necessary for both shareholders and potential investors.

 

The latest case is that of the supplier of electricity and integrated services for the energy market Alive Capital, which listed on April 14 its first issuance of corporate bonds on the Bucharest Stock Exchange, on the multilateral trading system (MTS), under ALV23 symbol. The launch of bonds on BSE was marked by the official opening of the trading session by Giacomo Billi (Founder and President of Alive Capital), Mihaela Stoica (CEO of Intercapital Invest) and Catalin Nae Serban (President of Intercapital Invest).

The issuance has a nominal value of RON 10 million and includes 100,000 bonds, with a nominal value of RON 100/bond, with a 3-year maturity and an interest rate of 8% per year, payable half-yearly.

The funds were attracted at the end of 2020 within a private placement with the support of Intercapital Invest, the Authorized Consultant that also supported the admission to trading of the bonds on the stock exchange and will be invested in the area of electricity generation from renewable sources and in the area of technical support of integrated services activities, related to electricity production and sale.

Alive Capital has an experience of almost 9 years in the energy sector. Since its incorporation and until 2020, the company has carried out ‘asset management’ activities specific to producers of electricity from renewable sources.

Since 2016, after obtaining the electricity supply license issued by the National Regulatory Authority for Energy (ANRE), Alive Capital has participated in centralized markets for electricity managed by the Romanian Electricity and Gas Market Operator (OPCOM). Since 2019 it was licensed by ANRE as gas supplier, and since the beginning of 2021 it has a license for commercial operation for an electricity production capacity from photovoltaic source.

Electricity in the portfolio of supplier Alive Capital related to 2019 consisted of 55.27% conventional source and 44.73% renewable source. At the end of 2020, Alive Capital managed 477 MW installed in electricity production capacities from renewable sources distributed throughout Romania (photovoltaic, wind, biomass power plants and small hydro-power stations), account for approximately 9.3% of total RES-E capacities in Romania.

The company ended 2020 with a turnover of RON 219.6mln and a net profit of RON 13.7mln.

Company’s revenues are generated from three main lines of activities: electricity trade generates 78.5% of revenues, asset management – 13% and electricity supply – 7.5%. Other two new business lines, gas supply and monitoring of renewable-energy power plants generated 0.09% and respectively 0.03% of revenues.

The founder of Alive Energy and Chairman of the Board of Directors is Giacomo Billi, who owns a 99.5% stake in the company, the difference of 0.5% being owned by Alive Energy SRL.

“We are pleased to support through the financing mechanisms of the capital market the development of the renewable energy segment, an important one for the energy market. Renewable energy projects, which involve a large need for capital, are part of the global goal for emission neutrality. The local capital market proves today, through this first issue of Alive Capital bonds, that it has the capacity to support green energy investments. We want to continue to be the connection between developers who can build green energy systems and the capital resources that active investors at BVB have at their disposal. The dynamics in the beginning of this year – eight issues of corporate bonds on MTS and the main market, as well as three government bonds and the six new listed companies – demonstrate the investors interest for new business ideas, as well as the level of financial resources available in the market,” Radu Hanga, Chairman of the Board, Bucharest Stock Exchange, said.

 

“Mankind has begun to realize that economic expansion can only be based on renewable, non-polluting energy, that provides the environment for a sustainable development of our society. The world’s states have begun to shut down their electricity generation capacity that are using polluting sources, and coal is the top. Alive Capital’s decision to invest in this sector is based on the belief that very soon investments in new renewable energy production capacities will be significant, and the digitization of electricity trading markets is already a reality. The tools offered by the capital market are the ones that will lead to the consolidation of our position in the field of green energy and to the further support of positive economic results, for the benefit of the company and of the investors,” Giacomo Billi, Founder and Chairman of the Board of Directors, Alive Capital, highlighted.

“Each Romanian company with ambitious growth intentions and big development plans should consider listing on Bucharest Stock Exchange as a financing alternative. Listing on the stock exchange could be the cherry from the top of the cake of a long-term strategic goal and the beginning of a new stage in the company’s life, brought by the listing in the spotlight. Through issuances of shares or bonds listed on the stock exchange, companies benefit from the ‘bondholder-shareholders’ transfer effect and can win an established group of potential investors. Today’s Alive Capital bond issue marks the company’s access into the Romanian capital market, and the funds raised will be used for investments in production of electricity from renewable sources.,” Mihaela Stoica, CEO, Intercapital Invest, mentioned.

 

About Intercapital Invest

Intercapital Invest is a company with over 20-year experience in the field of capital market, being an Authorized Advisor at the Bucharest Stock Exchange. Its purpose is to support the financing of companies through bond issues or shares and their admission to trading on the Bucharest Stock Exchange markets. In this process, Intercapital Invest promotes the best practices in corporate governance specific to issuers and provides investors with investment opportunities in private placements in bonds and equities.

 

About Alive Capital

Alive Capital is a Romanian company founded in 2013, by specialists with decades of experience in electricity business. They started initially with the objective to provide integrated management services for producers of renewable energy sources in Romania.

Since 2016 the company is licensed by the Romanian Energy Regulatory Authority (ANRE) as a supplier and trader for electricity; Alive Capital is now present and fully operational on most important central markets managed by the national platform OPCOM: DAM (Day-Ahead Market), CM-OTC (Centralized market with double continuous negotiation for electricity bilateral contracts), CMBC-EA-flex (Centralized Market for Electricity Bilateral Contracts – Extended Auction Mechanism and products that ensure the flexibility of trading), CMBC-CN (Centralized Market for Electricity Bilateral Contracts – Continuous Negotiation Mechanism).

Today, Alive Capital has become a reference on the Romanian market in terms of high standards and maximum efficiency of the services they offer to renewable sources electricity producers, as well as other customers.

Daniel Lazar

Journalist

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