3 minBanque de Luxembourg facilitates Encevo's flagship sustainable financing deal
In the context of major challenges in the energy transition, Banque de Luxembourg, in partnership with CIC Market Solutions, played a key role in structuring and successfully completing Encevo's €200 million green private placement.
Accelerating the energy transition
The energy sector is facing a complex set of issues: strengthening security of supply, reducing carbon emissions and modernising its infrastructure. To meet these challenges, Encevo has mobilised a new source of financing through a €200 million green private placement.
This deal with leading European institutional investors enables Encevo to diversify its financing methods and reinforce its investments in high-impact projects, notably the development of smart grids, hydrogen, and renewables such as wind and solar power.
A bespoke structure in a rigorous framework
This 10-year fixed-interest-rate private placement was structured and placed with the support of CIC Market Solutions, in close collaboration with experts from Banque de Luxembourg's Businesses & Entrepreneurs department.
“This transaction marks an important step in Encevo's financing strategy. We are delighted to have been able to support the group in this ambitious project, providing our expertise and in-depth knowledge of investor expectations,” explains the team at Banque de Luxembourg.
The deal, executed without a formal credit rating, was finalised in a challenging market environment, demonstrating the strength of the project and investor confidence in Encevo's model.
Financing aligned to ESG engagement
This private placement is part of Encevo's Green Finance Program Framework, which has been independently assessed and rated ‘strong’ by Sustainalytics. It ensures transparency on the use of funds, which are exclusively allocated to projects eligible for green finance.
“This issue is part of our sustainable financing strategy. It enables us to raise long-term funding to support structural investments that align with our environmental engagement,” says Marc Schroeder, CFO of Encevo.
A long-term partnership
Banque de Luxembourg has been supporting companies engaged in economic, technological and environmental transitions for many years. The Encevo deal illustrates the Bank's customised approach: a long-term relationship of trust based on a detailed understanding of the strategic challenges facing our clients.
“Our role is to facilitate the major transformations that companies are navigating today, advising them at every stage of their development. Sustainable financing transactions exemplify our long-term vision and responsible engagement,” notes Banque de Luxembourg.
About Encevo
The Encevo Group is a leading player in the energy transition in Luxembourg and the Greater Region. It operates across the entire energy value chain, from production to supply, including services and networks. With 3,000 employees and operations in five countries, it invests heavily in future-oriented infrastructure for reliable, sustainable and carbon-free energy.
Banque de Luxembourg supports business leaders in their financing, growth, transfer and investment projects. It offers a comprehensive, customised approach, integrating strategic, wealth management and ESG considerations. Committed to working for a responsible economy, Banque de Luxembourg provides solutions to address the challenges of sustainability.
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