Thursday, April 25, 2024

Enviva Announces Tax-Exempt Green Bond Offering

Enviva Inc. announced that the Industrial Development Authority of Sumter County, Alabama (the “Issuer”), intends to issue its Exempt Facilities Revenue Bonds (Enviva Inc. Project), Series 2022 (Green Bonds) (the “Bonds” and such offering, the “Tax-Exempt Green Bond Offering” or the “Offering”) in the aggregate principal amount of $250,000,0001. The proceeds of the Offering will be loaned to Enviva pursuant to a Loan and Guaranty Agreement (the “Loan Agreement”) to fund all or a portion of the costs of the acquisition, construction, equipping, and financing of Enviva’s wood pellet production plant to be located in Epes, Alabama (the “Epes plant”) and to pay costs and expenses of the Offering.

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Additional Details of Tax-Exempt Green Bond Offering:

The Borrower’s obligations under the Loan Agreement will constitute a senior unsecured obligation to the Borrower

Enviva and the Issuer expect to close the transaction on or about July 15, 2022, subject to customary closing conditions

The Company has designated the bonds as Green Bonds because the proceeds will be used to finance the construction of a fully contracted wood pellet production plant designed to produce a low-carbon, sustainable, renewable, drop-in substitute for fossil fuels to help decarbonize industries and the global economy, consistent with Enviva’s Green Finance Framework. Enviva’s Green Finance Framework, which guides issuances of Green Bonds, was developed in alignment with the Green Bond Principles (2021) as published by the International Capital Markets Association (ICMA) and the Green Loan Principles (2021) published by the Loan Market Association (LMA) and the Loan Syndications and Trading Association

The Bonds have not been registered under the Securities Act of 1933, as amended (the “Securities Act”), or under the securities laws of any other jurisdiction, on the basis of the Bonds being exempt securities pursuant to Section 3(a)(2) of the Securities Act.

This news release is neither an offer to sell nor a solicitation of an offer to buy any securities, including the Bonds, nor shall there be any sale of any such securities in any state or jurisdiction in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. Any offer or solicitation with respect to the Bonds will be made solely by means of the preliminary official statement.

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