Edition:
India

Arise To Refinance Existing Secured Bonds


Friday, 18 Sep 2020 

Sept 18 (Reuters) - Arise AB ::ARISE TO REFINANCE EXISTING SECURED BONDS.TODAY ENTERED INTO A BINDING AGREEMENT WITH DNB BANK ASA FOR A THREE-YEAR LOAN FACILITY AMOUNTING TO MEUR 40, DEDICATED TO GROUP'S OWN WIND POWER PRODUCTION.CALLS FOR EARLY REDEMPTION OF ITS SECURED GREEN BONDS WITH A NOMINAL VALUE OF MSEK 650 (ISIN SE0010920900) MATURING IN MARCH 2021.REFINANCING WILL DRAMATICALLY REDUCE GROUP'S TOTAL FINANCING COSTS, WHICH ON A YEARLY BASIS ARE EXPECTED TO DECREASE FROM CLOSE TO MSEK 60 TO APPROXIMATELY MSEK 25.FINANCING COSTS FOR GROUP'S OWN WIND POWER PRODUCTION, WHICH IS CONSOLIDATED IN SUB-GROUP, IS EXPECTED TO DECREASE FROM APPROXIMATELY MSEK 42 TO APPROXIMATELY MSEK 8.CORRESPONDING PRE-TAX PROFIT BREAK-EVEN LEVEL FOR GROUP'S OWN WIND POWER PRODUCTION IS EXPECTED TO AMOUNT TO APPROXIMATELY 0.30-0.35 SEK PER KWH.AFTER REFINANCING, GROUP'S OWN WIND POWER PRODUCTION IS EXPECTED TO BE CASH FLOW BREAK-EVEN (INCLUDING INTEREST COST AND SCHEDULED DEBT AMORTISATION) AT AN AVERAGE ALL-IN INCOME OF APPROXIMATELY 0.2 SEK PER KWH.COMPANY WILL CANCEL A SEK DENOMINATED INTEREST RATE SWAP.COUPLED WITH DISSOLUTION OF PREVIOUS ARRANGEMENT FEES RELATING TO BONDS, THIS WILL RESULT IN A ONE-OFF CHARGE IMPACTING PRE-TAX PROFIT BY ABOUT MSEK -35, OF WHICH ABOUT MSEK -33 ALREADY HAS BEEN RECOGNISED IN GROUP EQUITY. 

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