Nordex raises €550m for Acciona merger

GERMANY: Nordex has issued a 'promisory note' to raise €550 million it needs for the merger with Spanish manufacturer Acciona Windpower.

Nordex will merge with Acciona Windpower in a €785 million deal

A group of banks including Bayerische, Landesbank, BNP Paribas, Commerzbank, HSBC and UniCredit have arranged the financing.

Nordex said the money would be used for its proposed merger and to pay off a corporate bond.

The German firm said the Climate Bond Standard Executive Board had confirmed the agreement, the world's first "green" note. Previously, only green bonds had been given this identity.

The board is an international, investor-focused not-for-profit organisation focusing on mobilising the $100 trillion bond market for climate change solutions.

The note has similarities both with a loan and a bond, but with greater flexibility.

In October, Nordex agreed with the Acciona Group to acquire its wind power business in a €785 million deal. The Acciona Group, in return, will become Nordex's reference shareholder with a 29.9% stake and a seat on the supervisory board.

The deal is expected to be completed by the end of April 2016.

At the end of February, Nordex reported a 40% increase in sales and earnings before interest and tax increased from €78 million to €126 million in 2015.