Slovenia’s GEN-I eyes €50mn green bond issue

Slovenia’s GEN-I eyes €50mn green bond issue
/ Gen-I
By bne IntelliNews March 13, 2024

Slovenian energy group GEN-I is exploring the issuance of a green bond in the second quarter of 2024, anticipating a total nominal value of €50mn. This would be the second green bond issuance by a GEN-I Group company, with the primary objective of supporting transformative green projects,

GEN-I intends to host presentation meetings for potential investors as part of the public offering of its upcoming green bond, with local bank NLB providing professional advice and services for the offering.

The GEN-I Group aims to fortify its position as the leading energy trader in the region, the primary electricity supplier in Slovenia, and a key advocate for the green energy transition, the company said in a bourse filing.

Projections for 2024 include sales revenue of €3.5bn, gross profit at €120mn, and a net profit exceeding €23mn, contingent on regulatory relaxations and effective risk management.

Recognising the significance of sustainable activities, the GEN-I Group plans to direct investments towards sustainable production sources and storage facilities, contributing to the EU taxonomy-defined green initiatives. Approximately €100mn will be allocated to green transformation investments from 2024 to 2026.

Despite a 29% drop in revenue to €2.9bn in 2023, attributed to lower energy product prices and temporary regulatory restrictions, the GEN-I Group remains profitable, although net profit fell by 16.5% to €24.8mn in 2023.

Slovenia is one of several countries from the Central and Eastern Europe (CEE) region to have embraced green finance, as reported by bne IntelliNews in an article ‘CEE surfs the green bond wave’. 

Slovenia, where protection of the environment is part of the national identity, was the first country in the Southeast Europe region where a green bond was issued. 

In December 2018, SID Bank became the first Slovenian lender to issue green bonds, getting away a €75mn green bond private placement on the international capital market. Demand for the bonds totalled €172mn. Another major bank, Slovenia’s biggest bank NLB announced its issue of €500mn of four-year green bonds in 2023. 

In June 2021, Slovenia became the first sovereign in the wider CEE region and the second in the EU to issue a sustainability bond. Slovenia successfully issued its debut 10-year sustainability bonds worth €1bn on June 23.