Wednesday, July 12, 2017
THCP supports Building Energy convertible loan note issuance to fund further growthInvestment Activity
Three Hills Capital Partners (“THCP”) is today pleased to announce its participation in a c. €100m convertible loan note issuance by its existing portfolio company, Building Energy, to support the company’s continued growth. The transaction will provide Building Energy approximately €65m in new capital to continue project development and construction on a global basis over the coming years. THCP will roll its existing bond holding into the new convertible instrument, which will also be subscribed by one of the largest Chinese Financial Investor, ZZ Capital International Limited (“ZZCI”) and other investors. As part of the agreement, THCP will see an early repayment of one third of the invested capital contextually with the coming closing of a South African project.
THCP is excited to welcome ZZCI as an investor in Building Energy, and believes that ZZCI will bring significant value-add given its strong sector knowledge and deep ties to key Asian markets. ZZCI is a global alternative investment firm headquartered in Hong Kong, with offices in Hong Kong, London, New York, and Tel Aviv, and is listed on the GEM Board of the Hong Kong Stock Exchange. The total amount of ZZCI investment in Building Energy will be approximately €70 million.
The transaction represents an important step forward for Building Energy, which has developed a significant pipeline of renewable energy projects, and maintains operations in more than 20 countries globally. Building Energy’s management team, now located in London, will work closely with THCP and ZZCI over the coming years to expand the company’s footprint into China and other Asian markets.
Fabrizio Zago, CEO of Building Energy commented: “It has been invaluable to have the support of THCP over the last 2 years and we are excited to have ZZCI, one of the main Chinese investment firms, join as our new investor. The new resources will allow Building Energy to increase its financial flexibility, speeding up growth and helping build business in the Asian renewable energy market, a sector that has been steadily growing in the past years and that will continue to grow in the future.”
Mauro Moretti, Managing Partner of THCP, commented: “It has been a pleasure working closely with Building Energy’s management team to grow the platform since THCP first invested in 2015. We are now thrilled to support them in their next phase of expansion, and believe that this transaction represents a transformational moment for the company. We are equally excited to welcome as an investor ZZ Capital International, whose knowledge and network should prove instrumental to the company as it embarks on its next leg of growth”.