Progroup raised €630m debt and equity financing and sold&leased back €225m power plant

progroup Client Progroup AG is based in Germany and is Europe’s leading producer of corrugated board formats
Deal Type Raise capital, sell-side
Sector Industrials
Deal Capitalmind acted as financial advisor to Progroup securing a complex financing package of €630m for the construction of the largest containerboard machine in Europe and advised on €225m sale & lease back of a refuse derived fuel power plant to EnBW
  • Due to the client’s strong business model and a compelling investment case combined with an attractive financing structure, Capitalmind was able to secure high profile capital providers
  • Moreover Capitalmind supported Progroup AG in negotiations with capital providers, preparing marketing and other materials as well as negotiating final contract conditions in order to support a positive capital markets debut for Progroup AG
  • Capitalmind led a dual track process with two financing alternatives:  Project financing or bank / capital market financing vs. contract financing with well-known energy suppliers
  • Capitalmind managed to set up a financing model offering a variety of benefits: Progroup AG maintains entrepreneurial control and shares certain upside and risk, Progroup AG’s balance sheet is not impacted and existing facilities unaffected and receives full reimbursement of profit development costs (plus profit element) with thereafter no further financial exposure