June 21st 2023
CORE SUSTAINABILITY CAPITAL’S CREDIT INVESTMENT IN ZITON A/S ENABLES EFFICIENT RENEWABLE ENERGY PRODUCTION IN NORTHERN EUROPE
Core Sustainability Capital, a Danish private capital investment manager committed to sustainable impact, is delighted to announce its credit investment in ZITON, a renowned market leader in major component replacements for the European offshore wind industry. This investment falls under Core Sustainability Capital’s Impact Pillar “Renewable Energy and Energy Efficiency,” and advances ZITON’s pivotal role in maintaining efficient renewable energy production in Northern Europe.
ZITON’s recent acquisition of the WIND ENERGY jack-up vessel is a significant milestone in their mission to expand and upgrade their fleet to support sustainable societal infrastructure. This vessel is poised to embark on a six-year time charter with Siemens Gamesa, commencing in early 2024. In anticipation of this charter, ZITON is undertaking extensive upgrades to ensure compliance with best-in-class European standards.
To support the Company’s growth plans and facilitate the acquisition of WIND ENERGY, ZITON has successfully raised financing of EUR 296 million. A significant portion of the financing has been committed by Core Sustainability Capital through an ESG-linked loan of DKK 745 million (~EUR 100 million) via its Core Sustainability Fund I. The loan terms align the margin with specific impact actions and ZITON’s performance in various Environmental, Social, and Governance (ESG) metrics, fostering sustainable practices and incentivizing carbon footprint reduction. This investment reflects Core Sustainability Capital’s commitment to supporting companies with sustainable impact as their core value.
Carsten Gröhn, Managing Partner at Core Sustainability Capital, expresses enthusiasm for the partnership, stating, “We are proud to make this impact investment in ZITON, a company playing a vital role in maintaining the efficiency and capacity of Northern European wind farms. In 2022, ZITON enabled ~599 megawatts of idle renewable energy capacity to come back into operation through its service interventions. Through ZITON’s acquisition of WIND ENERGY, we look forward to advancing the number of megawatts maintained to support efficient renewable energy production in Europe.”
Thorsten Jalk, CEO of ZITON, emphasizes the significance of the impact investment, stating, “ZITON is proud to be the clear market leader within offshore wind major component replacement. Our partnership with Core Sustainability Capital allows us to strengthen our commitment to renewable energy and energy efficiency through our successful acquisition and upgrade of the WIND ENERGY.”
The collaboration between ZITON and Core Sustainability Capital exemplifies the power of impact investments in advancing renewable energy and energy efficiency, fostering a greener energy landscape in Northern Europe.
Founded in 2007 and with HQ in Horsens, Denmark, ZITON is the leading provider of major component replacements for the European offshore wind industry. With a focus on sustainability, ZITON aims to maintain and enhance the renewable energy generation and capacity of Northern European wind farms.
About Core Sustainability Capital
CS Capital is a recently established private capital investment manager, which exclusively invests in Nordic companies with sustainable purposes. CS Capital manages DKK 5 billion in its Core Sustainability Fund I, which is backed by the Danish pension fund Velliv. CS Capital is an active investor with a focus on equity minorities and credit investments to support impact companies with their sustainable growth ambitions towards the green transition.
Core Sustainability Capital contact details:
Jimmy Lundby, Head of Credit Investments
direct: +45 92 15 51 40
ZITON A/S contact details:
Thorsten Jalk, CEO ZITON A/S
direct: +45 8744 4410
Jens Michael Haurum, CFO ZITON A/S
direct: +45 8744 4430