Jul 08, 2013. /Lesprom Network/. German Pellets has successfully placed its second company bond. With a gross issue volume of Euro 50 million, the company bond is fully placed. Demand was strong among private and institutional investors and the issue was oversubscribed, as the company said in a press release received by Lesprom Network. 

German Pellets will use the revenue from the issue to attain further growth in the market for renewable heating. Specifically, German Pellets is planning to further develop its international storage and logistics system, to extend its end-customer business and to rationalise its existing sites.

“We are happy to see that, together with us, our investors are continuing to drive developments forward in this market of the future – wood pellets. As a heating material, pellets are contributing to the substitution of fossil-based energy sources in Europe, such as oil and gas; up to now, there has been no use of subsidies. This "heating security" enables investors to benefit from this development," observes Peter H. Leibold, Managing Partner of German Pellets GmbH.

From 8 July 2013 onwards, the bond is tradable in the Bondm trading segment of the StuttgartStock Exchange. The bond has a five-year term; the coupon payment is made annually, with the first payment scheduled for 9 July 2014.

German Pellets GmbH was founded in 2005 in Wismar (Mecklenburg-Vorpommern) and has developed into the largest producer of wood pellets worldwide. At 15 sites in Germany, Austria and the USA, German Pellets is producing wood pellets and also animal-hygiene products.