Arise AB

09/18/2020 | Press release | Distributed by Public on 09/18/2020 03:35

Arise to refinance existing secured bonds

Arise to refinance existing secured bonds
Arise Wind HoldCo 9 AB with subsidiaries (the 'Sub-group'), wholly-owned by
Arise AB (publ) ('Arise' or  the 'Company'), today entered into a binding
agreement with DNB Bank ASA for a three-year loan facility amounting to MEUR 40,
dedicated to the group's own wind power production (the 'Loan'). In connection
therewith, Arise calls for early redemption of its secured green bonds with a
nominal value of MSEK 650 (ISIN SE0010920900) maturing in March 2021 (the

The refinancing will dramatically reduce the group's total financing costs,
which on a yearly basis are expected to decrease from close to MSEK 60 to
approximately MSEK 25, incl. interest cost relating to the Company's convertible
bonds, IFRS 16 items and accrued arrangement fees. Financing costs for the
group's own wind power production, which is consolidated in the Sub-group, is
expected to decrease from approximately MSEK 42 to approximately MSEK 8, incl.
IFRS 16 items amounting to approximately MSEK 2 and accrued arrangement fees.

After the refinancing, the group's own wind power production is expected to be
cash flow break-even (including interest cost and scheduled debt amortisation)
at an average all-in income of approximately 0.2 SEK per KWh. The corresponding
pre-tax profit break-even level for the group's own wind power production is
expected to amount to approximately 0.30-0.35 SEK per KWh.

In connection to the refinancing, the Company will cancel a SEK denominated
interest rate swap. Coupled with dissolution of previous arrangement fees
relating to the Bonds, this will result in a one-off charge impacting pre-tax
profit by approximately MSEK -35, of which approximately MSEK -33 already has
been recognised in group equity in accordance with IFRS 9.

Redemption of the Bonds and cancellation of the interest rate swap will be
financed through the Loan and available cash at hand. Closing of the refinancing
is expected to occur on 14 October, 2020.

'We are very pleased to refinance and significantly decrease the financing costs
of our wind power production. Successful project transactions over the last few
years have allowed us to finally be able to put in place a flexible and cost
-efficient financing. Along with the previously communicated extension of
service-life and new service agreements for our GE-wind farms we have now paved
the way for profitability also within our wind power production.', says Linus
Hägg, CFO Arise AB.

Halmstad, 18 September 2020

ARISE AB (publ)

For further information, please contact:
Linus Hägg, CFO Arise AB, +46 702 448 916

This information is such information as Arise AB (publ) is obliged to make
public pursuant to the EU Market Abuse Regulation. The information was submitted
for publication, through the agency of the contact person set out above, at
11.35 am CET on 18 September 2020.Regarding information about how we process
your personal data we refer to our Privacy policy, which is available on our
website If you no longer wish to have our press releases and news
please contact us via [email protected]
About Arise
Arise is one of Sweden's leading wind power companies, with the business concept
to develop, build and manage onshore wind farms for its own account and on
behalf of investors. The company is listed on NASDAQ Stockholm.

Arise AB (publ), P.O. Box 808, SE-301 18 Halmstad, Sweden, telephone +46 (0)10
450 71 00, corporate id. no. 556274-6726
E-mail [email protected],