Starting on 15 July 2010, Solar Millennium AG (ISIN DE0007218406) is issuing a corporate bond with a volume of € 50 million. By subscribing to this bond with an attractive fixed interest rate of 6.5% p.a. and a term of five years, private investors can contribute to the realization of sustainable energy generation with excellent prospects on the market. The minimum subscription limit for this bond is € 1,000.
The proceeds from the bond are to be primarily used to pre-finance important key components for solar-thermal power plants in the US. Components, such as the power plant turbine for instance, are characterized by long delivery times and therefore have to be ordered well in advance, also involving down payments, in order to ensure the speedy realization of a power plant. The run-up to the realization of a power plant also incurs other costs like costs for financial securities, environmental impact studies, preparation works for the official start of construction and other investments that are to be partly financed with the issue proceeds.
In addition, Solar Millennium will use part of the issue proceeds for research and development activities in order to achieve and secure sustainable technology leadership in the field of solar-thermal electricity generation. As such, the degree of parabolic trough power plant efficiency, for example, is to be further increased, while investment costs are to be reduced at the same time. In the past, the Solar Millennium Group has already realized several efficiency increases with parabolic trough technology, the most recent one being the development of the new HelioTrough collector generation.
Thomas Mayer, the spokesman of Solar Millennium AG’s Executive Board, explains the bond’s advantages for investors and the Company as follows: “This bond offers responsible private investors, who set value on a fixed interest rate, a proven and attractive investment opportunity in the field of renewable energy sources. The issue proceeds will help Solar Millennium AG to utilize the excellent market conditions in the US even more effectively and to accelerate the development of the most promising projects. With the US projects, we are advancing into a new dimension of solar power plant construction.”
The southwestern states of the US in particular, with ideal direct normal irradiation of up to 2,700 kilowatt-hours per square meter and year, feature numerous excellent locations for solar-thermal power plants in the vicinity of densely populated areas. The federal US government and the state governments have created a framework that facilitates the realization of major solar-thermal power plants, while at the same time ensuring a high degree of investment safety. Utilities are bound, for instance, to cover a considerable share of their electricity supply from renewable energy sources. In California, for example, every third kilowatt-hour is to be generated from renewable energy sources by 2020. Investments are further facilitated by support programs and tax relief measures as well as government loan guarantees and accelerated approval procedures.
Mayer illustrates: “On the whole, the Solar Millennium Group’s market position in the US is highly promising, as Solar Millennium was one of the first companies to tap this market by developing projects in the southwestern states of the US. Moreover, the Group is developing several projects at the same time, some of which have already entered very advanced stages of the approval process. We intend to commence realizing at least one major solar power plant before the end of this year, as scheduled. The path has already been paved.” At the four locations with the most advanced approval procedures, a total of up to nine power plants can be built. With a capacity of some 250 MW each (totaling up to 2,300 MW), these planned power plants are far larger than the already realized Andasol projects in Spain.
The bond can be subscribed until it is fully placed, but by 14 July 2011 the latest. The Solar Millennium Invest AG subsidiary is responsible for marketing and selling the bond. As a financial services company, Solar Millennium Invest AG is subject to the requirements set forth in the laws on banking (Kreditwesengesetz) and the trading of securities (Wertpapierhandelsgesetz) as well as the corresponding notification and audit obligations. The company was certified by the German Federal Bank (Bundesbank) and the Federal Financial Supervisory Authority (BaFin) and is a member in the German Compensatory Fund of Securities Trading Companies (EdW).
Please note that this offer is only available in German and addresses German residents only. The german prospectus for the bond is available for download on the Solar Millennium AG website www.SolarMillennium.de. Further information and the subscription documents for the bond are available as soon as the issue has commenced on 15 July 2010 at www.SolarMillennium-Invest.de.
About Solar Millennium AG:
Solar Millennium AG, Erlangen, (ISIN DE0007218406) is an international company in the renewable energy sector, with its main focus on solar-thermal power plants. Together with its subsidiaries and associates, the Company specializes in parabolic trough power plants and has managed to take a globally leading position in this field. Solar Millennium strives to further extend its expertise in the area of solar-thermal power plants with the aim of achieving and securing sustainable technology leadership. As such, the Company covers all important business sectors along the value chain for solar-thermal power plants: from project development and financing to the technology and the turnkey construction and operation of power plants. In Spain, Solar Millennium developed Europe’s first parabolic trough power plants and realized these together with partners. Additional projects are planned around the world with an overall capacity of more than 2,000 megawatts: here the current regional focus is on Spain, the US, India, China, the Middle East and North Africa.
About the technology:
Solar-thermal power plants generate electricity by converting solar radiation into heat energy. In a parabolic trough power plant, trough-shaped mirrors concentrate the incidental radiation onto a pipe in the focal line of the collector. Its absorption heats a fluid heat medium in the pipe, generating steam in the power block through a heat exchanger. As in conventional power plants, the steam powers a turbine to generate electricity. By integrating thermal storage, electricity can be supplied on demand, even after sunset.
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