Neutral Capital Finance PLC has started to issue a green $50m medium term note Eurobond programme, rated A-(sf) (ind) from ARC Ratings. These bonds are to fund the company’s expansion plans in biodiesel production plants in UAE countries, Asia and Africa. Given the size and ambition of the bond programme, they have seek the legal advise of DWF’s Debt Capital Markets team.
The first 2019 series of Bonds for an amount of US$12m was issued by Neutral Capital Finance plc on 12 April 2019. The programme is listed on the Frankfurt exchange with a rating of A-(sf) (ind) from ARC Ratings.
The Bonds will fund Neutral Fuels LLC’s expansion plans in the UAE and other appropriate jurisdictions in the Middle East, Asia and Africa and to build and operate a number of modular-based biodiesel production plants. Neutral Fuels converts waste cooking oils and fats into European standard EN14214 compliant biofuel.
The bond offering is complex and, particularly, intrincate to be compliant with the European standard EN14214. As such, the firm has seek the legal advice of Manchester-based legal firm DWF, which will share their knowledge and expertise with the company.
Martin Pugsley, Head of Financial Services at DWF said: “We are pleased to advise Neutral Capital Finance on this significant green bond issue, which will open up lines of funding to Neutral Fuels to expand its growth of biodiesel production across the UAE and the Gulf. This transaction perfectly demonstrates our global debt capital markets credentials and specific expertise in the Financial Services sector.”
The DWF team was led by partner, Martin Pugsley, alongside Michael Byrne, Sophie Morris, Laurie Clay and Ade Olunowo in the London office and Umera Ali and Katrina Mackay in the Banking team from our Dubai office.
Thomas Lloyd-Jones, CEO of Zenzic Partners, who acted as arranger said: “We are pleased to have arranged the Neutral Capital Finance Plc transaction. The security of the structure focuses on the key strength of renewable energy companies, as a sector: the durable assets and long-term asset cash-flows generated by the installations, in this case operated by Neutral Fuels LLC; an extremely experienced operator in the sector.”
Hernaldo Turrillo is a writer and author specialised in innovation, AI, DLT, SMEs, trading, investing and new trends in technology and business. He has been working for ztudium group since 2017. He is the editor of openbusinesscouncil.org, tradersdna.com, hedgethink.com, and writes regularly for intelligenthq.com, socialmediacouncil.eu. Hernaldo was born in Spain and finally settled in London, United Kingdom, after a few years of personal growth. Hernaldo finished his Journalism bachelor degree in the University of Seville, Spain, and began working as reporter in the newspaper, Europa Sur, writing about Politics and Society. He also worked as community manager and marketing advisor in Los Barrios, Spain. Innovation, technology, politics and economy are his main interests, with special focus on new trends and ethical projects. He enjoys finding himself getting lost in words, explaining what he understands from the world and helping others. Besides a journalist he is also a thinker and proactive in digital transformation strategies. Knowledge and ideas have no limits.
