SUSI Energy Efficiency Fund and Greenled sign exclusive project financing partnership for €15 million of energy efficiency projects

SUSI Partners AG has announced that the SUSI Energy Efficiency Fund (SEEF) has signed a framework agreement with the Finnish smart lighting company Greenled Oy for financing of their energy efficiency lighting projects in Finland.

The total transaction value is foreseen to reach up to €15 million (US$15.7 million) by the end of 2018. All projects combined will lead to average emission savings of over 6,000 tonnes of CO2 and energy cost savings of over €2.5 million per year.

Under the agreement, Greenled will retrofit commercial, industrial, logistics, sports and office facilities as well as street and area lighting with its high-efficiency LED solutions. SEEF will exclusively finance selected small and large-scale-projects through an ongoing secured notes issue program, allowing Greenled to free up capital for growth. The projects will mainly be implemented in Finland with potential future projects in Sweden and Germany as Greenled expands its activities.

The SEEF is the largest private investment vehicle financing energy efficiency projects in Europe. The SUSI Energy Efficiency AG, a subsidiary of SUSI Partners AG (SUSI), advises the fund on investments.

Greenled is a manufacturer and supplier of all-inclusive LED lighting solutions in Finland. Their vision is based on emphasizing energy efficiency and sustainable development within production and technologies used. In 2013, the company brought its manufacturing back to Finland from low-cost countries, which, according to CEO Pertti Tahvanainen, has proven to be a strategical success resulting in strong growth in sales.

For Castrén & Snellman Attorneys Ltd., the legal counsel for the framework agreement, the established partnership presents an exceptional financing solution in the energy efficiency sector:

Alexander Rothlin, Director at SUSI Energy Efficiency AG, is very positive on the transaction that will further strengthen SUSI’s core operations in Finland. He said:

“The Greenled transaction is another milestone for SUSI in Finland, after the recent addition of the second Finnish windfarm to our renewable energy portfolio. We see a strong potential for further energy efficiency projects in the local public and industrial sector, which we are keen to be part of.”

Andras Puskas, Vice President at SUSI Energy Efficiency AG, adds:

“The transaction teams worked closely together to develop an innovative financing structure suitable to facilitate the growth of Greenled. We are impressed by Greenled's commitment to quality and its track record of large scale Lighting as a Service projects.”

Miika Pinomaa, Partner at Castrén & Snellman, stated:

“The model secures the receivable of the financier while establishing the possibility for a secondary market for such receivables: This structure is a win-win solution for all parties.”