About Grupo Jorge
- Grupo Jorge is a Spanish based company with more than 80 years of history producing and selling pork meat products worldwide
- The Group owns several renewable energy plants through its energy division, Jorge Energy, currently with over 70 MW of wind energy and 40 MW of Solar PV projects
- Desagri is a Solar PV plant which began operation in December 2012. Located in Zaragoza, it has an installed capacity of 9.9MW and a regulatory life of 30 years
Transaction objective
- Mirabaud was tasked with attracting financiers from institutional investors for the refinancing of the Desagri power plant
- The objective was ultimately to refinance Desagri’s power plant with new money, allowing shareholders to make a fund distribution to the HoldCo. in order to facilitate the funding of new power projects
- Grupo Jorge closed the issuance of this first Project Bond for an amount of €20m. The bond was issued for a period of 22 years having a fixed coupon of 3.7%
- Listed in Freiverkehr (the non-regulated Frankfort Stock Exchange market), the transaction was executed with international private investors in a timeframe of just one and a half months
Mirabaud contribution and added value
- The way in which Mirabaud structured the transaction allowed Grupo Jorge to refinance Desagri on very attractive terms, taking advantage of the good timing in debt markets
- Project Bonds offer higher flexibility in financing terms and conditions, allowing longer financing periods (>20 years), a higher degree of leverage, recurring generation of cash for shareholders, and a diversified investor base. This, in turn, facilitated the entrance of institutional investors in the capital structure of the Company
- This transaction reinforces Mirabaud’s status as the advisor of choice in the issue of Project Bonds with institutional investors
Spain
Enrique Aguado
Head of Corporate Finance & Capital Markets
MIRABAUD SECURITIES LIMITED, SUCURSAL EN ESPAÑA
Paseo de la Castellana 21
2ª Planta
28046 Madrid
T +34 91 793 78 20
Grupo Jorge official website
Visit website“We are very happy to have assisted Grupo Jorge in refinancing part of its assets through a Project Bond under very good conditions. In addition, generating the ability to benefit from significant cash out through a dividend payment. Project bonds are a very interesting financing tool and thanks to our extensive experience with a broad range of clients, we have a high level of expertise in this area.”
Key data
Project Bond issue on Frankfort Stock Exchange (Freiverkehr)
| Issuer | Desarrollos Agronómicos Industriales 1, S.L. (Grupo Jorge’s subsidiary) |
| Sector | Energy – Solar PV |
| Market | Frankfort Stock Exchange – Non-regulated Market (Freiverkehr) |
| Transaction type | Project Bond - Brownfield |
| Size | € 20.000.000 |
| Coupon | 3.71% |
| Tenor | 22 years |
| Mirabaud Role | Sole Bookrunner |