Financial advisor to Energie Ausserschwyz AG on the integrated financing of the district heating grid by means of additional equity and bank loans
- Member IFBC
- Sector Energy Transition
- Date completed 21.09.2023
- Client Energie Ausserschwyz AG
- Country Switzerland
- Investor EW Höfe AG and three swiss banks
- Country Switzerland
As a local energy service provider, Energie Ausserschwyz AG (EASZ) supplies the districts of March and Höfe with CO2-neutral heat and green electricity. The new district heating grid of the young company EASZ has met with very positive demand from property owners. Against this backdrop, EASZ is planning an accelerated expansion in the direction of Pfäffikon (SZ). At the same time, the district heating business model means that substantial upfront investments in infrastructure must first be made before heat can flow and be sold. At the same time, in the current environment, inflation and interest rates pose additional challenges for the company. EASZ is countering these circumstances with various measures, including the raising of additional financial resources for the upcoming investments.
In this context, EASZ announced a capital increase of around CHF 25 million on October 9, 2023. The capital increase was supported in particular by the locally anchored main shareholder EW Höfe (EWH). EASZ supplemented the equity capital increase by increasing the existing credit line by an additional CHF 35 million with three other Swiss banks. This well-supported and comprehensive financing of an additional CHF 60 million will accelerate the further expansion and densification of the district heating grid. In this way, EASZ not only relieves the electricity grid, but also makes a valuable contribution to regional value creation and the development of a more environmentally friendly energy future with its ecological production of district heating and electricity.
Support from IFBC
IFBC supported EASZ and EWH as financial advisor throughout the entire financing process. As part of the preparation of the financing concept and the subsequent implementation, business plans were drawn up, independent valuations were carried out, financing options were examined, all stakeholders were involved and finally loan agreements were negotiated with three banks. IFBC contributed its extensive financing experience as well as its in-depth knowledge and benchmarks from the energy sector and supported the management and Board of Directors of both companies during the transactions. In this way, the strategic goals of decarbonizing the heat supply can be achieved in the interests of all shareholders and the region.
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