UGE International plans marketed offering of 9% green bonds due 2028

By Wendy Van Sickle

Columbus, Ohio, Oct. 10 – UGE International Ltd. entered into an agreement dated Oct. 5 with Canaccord Genuity Corp. as lead underwriter for a marketed offering of 9% green debentures due Dec. 31, 2028, according to a news release Tuesday.

The size of the offering, which will be for gross proceeds of up to $4,999,850, will be based on the market at the time of entering into a definitive underwriting agreement between the company and the underwriters.

UGE will grant the underwriters a 30-day over-allotment option to purchase up to an additional 15% of the number of green bonds sold under the offering.

The green bonds will be denominated in Canadian and U.S. dollars and will be issued at a price of C$950 per C$1,000, or $950 per $1,000, principal amount, respectively.

The bonds will be secured against a pool of the company's projects that have reached UGE's stage 3.1 or higher by a pledge to each subscriber of the equity interests in the projects. UGE will covenant with subscribers to maintain a minimum coverage ratio of the value of the pledged projects equal to 150% of the total amount of obligations outstanding under the green bonds.

The net proceeds are expected to be used for the development of solar and energy storage projects.

Computershare Trust Co. of Canada will act as trustee. The offering is expected to close on or about Oct. 30.

The Toronto company develops, owns and operates commercial and community solar projects in the United States and strategic markets abroad.

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