Gren Group completes €1.15 billion refinancing for its Baltics business
PRESS RELEASE: Gren Group completes €1.15 billion refinancing for its Baltics business
- The transaction represents the largest infrastructure financing in the region to-date
- This refinancing will accelerate Gren’s expansion and strengthening of its energy infrastructure across the Baltics
- Gren’s UK business will be financed separately going forward
Gren Group (“Gren”), a leading Northern European energy solutions infrastructure platform, is pleased to announce the successful refinancing of its existing borrowings through a new €1.15 billion financing package. The package represents the largest infrastructure financing transaction in the Baltic region to-date.
Gren provides district heating and cooling, renewable energy solutions, and industrial energy services, and has extensive local biomass and waste-based energy production experience. Gren operates across the Baltics and the UK, with 1,500 MW of production capacity, over 700 km of heat networks, and approximately 3.0 TWh of annual energy sales. More than 95% of its energy is produced from renewable and recovered fuels.
The transaction includes the refinancing of Gren’s existing debt facilities and the raising of additional facilities to support the Group’s growth strategy in the Baltics, with a particular focus on the continued expansion and further strengthening of its energy infrastructure, which will benefit customers and society across three countries through low-carbon, competitive, and secure energy supply. The new debt package establishes a flexible and scalable capital structure that aligns with Gren’s platform model and provides management with a platform to execute their long-term business plan. As a result of the refinancing, Gren’s UK business will be financed separately going forward.
Since acquiring Gren in 2021, Partners Group, one of the largest firms in the global private markets industry, has worked closely with management and the Board to drive value creation, transforming the business into a leading Northern European independent energy solutions provider. Partners Group also led Gren’s expansion into the UK, one of the fastest growing district heating markets in Europe, in 2024. These initiatives have led to a three-fold increase in group EBITDA over the last five years.
Urmo Heinam, CEO of Gren Baltics, said: “This financing provides a flexible and scalable long-term capital structure that supports our continued growth ambitions and the expansion of essential, sustainable energy infrastructure across the Baltics, positioning our business strongly for its next phase of development. The financing underpins our unique market position and reflects the resilient, long-term characteristics of our infrastructure asset base.”
Ilkka Niiranen, CEO of Gren Group, said: “We are very pleased to have successfully completed this landmark refinancing for our Baltics business, the largest infrastructure financing transaction in the region. The breadth and quality of the lender group, combining strong support from existing partners with the addition of new institutions, reflects confidence in Gren’s Baltic platform, its robust credit profile, and the long-term fundamentals of our infrastructure business.”
Albane Meynard, Member of Management, Infrastructure, Partners Group; Member of the Board, Gren, said: “This financing is not only a milestone for the Baltics region, but also in Gren’s growth as a leading energy solutions provider. The financing package will support further value creation across Gren’s extensive operations in its home Baltic markets, whilst enabling the company to find tailored solutions for the growing UK business in the future. We are very pleased with Gren’s transformation since our acquisition and look forward to working with management on future strategic initiatives.”
The transaction attracted strong support from a diverse group of leading infrastructure lenders, consisting of a significant number of existing relationship banks, as well as new lenders, reflecting the strength and attractiveness of Gren’s credit profile. Rothschild & Co acted as debt adviser to Gren Group in connection with the transaction, whilst Clifford Chance LLP served as legal adviser to the Company. A&O Shearman LLP acted as legal adviser to the lenders.
About Gren Group
Gren is a leading Northern European energy solutions infrastructure platform providing district heating and cooling, renewable energy solutions, and industrial energy services. Gren has extensive local biomass- and waste-based energy production experience, with a strong track record of delivering large projects and operating them with high efficiency, availability, and reliability. Owned by Partners Group, Gren operates in the Baltics and the UK with 1,500 MW of production capacity and 3.0 TWh of annual energy sales. More than 95% of our energy is produced from renewable and recovered fuels. For more information, please visit www.gren.com
About Partners Group
Partners Group is one of the largest firms in the global private markets industry, with around 2’000 professionals and over USD 185 billion in assets under management globally. The firm has investment programs and custom mandates spanning private equity, private credit, infrastructure, real estate, royalties, and special opportunities. With its heritage in Switzerland and primary presence in the Americas in Colorado, Partners Group is built differently from the rest of the industry. The firm leverages its differentiated culture and its operationally oriented approach to identify attractive investment themes and to transform businesses and assets into market leaders. For more information, please visit www.partnersgroup.com or follow us on LinkedIn.
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