While the issuance of the green bond confirms the appetite for renewables by the market, the front-end engineering & design contract awarded in oil & gas is re-assuring. In the press release, Dolfines also mentions an order book that has been largely reconstituted in the audit division (Factorig). This supports our view on the recovery of oil & gas services after the trough in 2020.

Issuance of a €1.5m green bond:

  • Maturity of two years (January 2023)
  • Refundable monthly / nominal annual coupon of 12% payable monthly
  • From July 2021, Dolfines is able to repay bondholders
  • From July 2021 to December 2022, bondholders are able to convert the bonds into Dolfines’ shares. The conversion price is the VWAP of the 10 trading days preceding the conversion minus a 20% discount

Green bond: the issuance follows the EU Green Bond Standard. The standard is based on several components (e.g. alignment of the project with the EU-taxonomy) and is designed to make the issuance of green bonds more uniform as these are having an increasing role in the energy transition. The bond was structured and placed by Capital Système Investissements in a club deal with professional investors.

Oil & Gas: re-assuring update after the dramatic H1 20. Dolfines’ oil & gas services has been awarded a front-end engineering & design contract (FEED) for a drilling rig. This is positive news as, traditionally, engineering contracts are lumpier than maintenance ones. In audit and inspection, Factorig seems well positioned to restart its activities in 2021. Last week, the EIA reported US commercial crude inventories decreasing by 1 million barrels from the previous week. US crude oil inventories are slowly normalising, now c. 4% above the five-year average compared to 9% a month ago. We expect the $55-60/bbl oil price range to incentivise operators to raise their output, supporting drilling activities.

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