Bord Gais raises $640m as it readies Irish expansion

Frankreich , Windenergie , Aufbau einer Nordex N100 gamma im Windpark Germinon in der Champagne, Frankreich.France , windenergy , Erection of Nordex N100 gamma in Germinon wind farm in the Champagne region, France. Nordex AG17.7.2010(c) Foto: Jan Oelker / Nordex , 2010jan.oelker@gmx.de

State-owned Irish energy group Bord Gais successfully raised €500m ($642.4m) in a bond auction, shoring up its finances as it puts its shoulder into a major renewables build-out over the next three years.

Chief financial officer Michael O’Sullivan says the successful bond issue “demonstrates the real momentum behind Irish companies on international markets” after a long period of difficulty.

But the auction – offering up bonds with a five-year maturity at a coupon of 3.625% – is also a vote of confidence for the company’s near-term investment plans, which focus heavily on renewables.

Bord Gais is the largest owner of installed wind capacity in Ireland, its 132 turbines spread across 13 projects representing 15% of the country’s roughly 1.7GW base.

Yet with the exception of the 6MW…

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