Nordex Completes $391 Million Green Convertible Bonds Placement

The bonds are expected to be issued on or around April 14, 2023


Germany-based wind turbine manufacturer Nordex has placed €333 million ($391 million) worth of new green convertible bonds due in 2030. The bonds, with a denomination of €100,000 (~$109,043), will be convertible into new or existing ordinary bearer shares of Nordex.

The proceeds from the convertible bonds will be used for eligible green projects, as defined by Nordex’s Green Financing Framework.

The bonds will bear a coupon of 4.25% per annum, payable semi-annually, and are expected to be issued on or around April 14, 2023.

The pre-emptive rights of existing shareholders to subscribe to convertible bonds have been excluded.

The issuance will allow investors to participate in improving the company’s outlook and its environmental commitments.

Five Nordex subsidiaries will guarantee the payments of the convertible bonds. They will be issued and redeemed at 100% of their principal amount unless previously converted, repurchased, or redeemed.

The bonds will be traded on the non-regulated open market segment of the Frankfurt Stock Exchange.

The company can redeem the convertible bonds at their principal amount under their terms and conditions at any time. Holders of the bonds will be entitled to require an early redemption of their bonds on April 14, 2028.

“Through this convertible bond issuance, we are pleased to enable investors to take part in the company’s improving outlook, as well as to allow them to be associated with our environmental commitments. The successful placement demonstrates investors’ high confidence in Nordex’s business model and the industry’s long-term prospects. It allows Nordex to strengthen its capital structure while optimizing financing costs.”, said Ilya Hartmann, Chief Financial Officer of Nordex.

Nordex has agreed not to sell any securities that are substantially like the convertible bonds or shares during a lock-up period ending 90 days after the settlement of the convertible bond, subject to certain exceptions and waivers by the Joint Global Coordinators.

In October last year, Nordex received an order for 81.6 MW from the Landwind Group to supply 12 N163/6.X turbines distributed among four wind farm sections in eastern Lower Saxony, Germany.

The company also received an order for 31.5 MW wind turbines in Germany, which included seven N149/4.X turbines of the Delta4000 series for the Kantow wind farm.