Fast-charging company Fastned has successfully raised €32.9 million by issuing new bonds to private investors, the company announced after the market closed on Monday. These bonds, which come with a five-year term, offer an attractive 6% coupon rate.
A significant portion of the funds raised, amounting to €12.3 million, came from existing investors who chose to extend the maturity of bonds they already held. This move highlights the confidence of current investors in Fastned’s long-term potential. Fastned has been periodically reaching out to private investors over the years, securing more than €195 million in total through these efforts.
In addition to tapping into the bond market, Fastned has also utilized its listing on the Amsterdam stock exchange to bolster its financial position. In 2021, the company issued new shares worth €150 million, followed by an additional €75 million in 2022. These equity raises have been critical in funding the company’s expansion and operational activities.
Despite these capital influxes, Fastned reported a loss of €18.6 million last year. The company has consistently emphasized that these losses are primarily due to its substantial investments in infrastructure, specifically the construction of fast-charging stations for electric vehicles. These investments are seen as essential to positioning Fastned at the forefront of the rapidly growing EV market.
Fastned’s strategy hinges on the anticipated increase in the adoption of electric vehicles. The company is confident that as more motorists switch to electric driving in the coming years, its financial performance will improve significantly. The increased demand for fast-charging solutions is expected to drive revenue growth, eventually turning the company’s financial fortunes around.