Starting on 7 March 2011, Solar Millennium AG (ISIN DE0007218406) is issuing a corporate bond with a volume of € 100 million.

By subscribing to this bond with an attractive fixed interest rate of 6.0% p.a., a term of five years and annual interest payments, private investors can contribute to the expansion of clean energy generation. The minimum subscription limit for this bond is € 1,000.00. This bond will be placed on the open market via a bank after full subscription and thus become tradable, just like the previous bond.

Oliver Blamberger, CFO of Solar Millennium AG, explains: “Corporate bonds are a proven instrument for corporate financing and Solar Millennium has very positive experience with this tool. Over the past years, Solar Millennium has shown its competence in all bond-related areas from subscription handling and administration to timely annual interest payments and full redemption. Thousands of investors value us as their partner for sustainable investment.”

The lion’s share of issue proceeds is to be used for pre and interim financing of major solar-thermal power plant projects, particularly for the projects which the Solar Millennium Group is developing in the southwest of the U.S. Until the financial close is completed, various project-related costs as well as the funding of the project companies require prefinancing. This includes for example costs in connection with the approval procedures and project development activities. Upon obtaining the financial close, these funds will be released and can be used for interim financing of equity shares until the power plants are in operation. Upon completion and commissioning of the power plants after 2.5 to 3 years, the larger part of these funds is available again.

In addition, Solar Millennium will use part of the issue proceeds for Group expansion in the U.S., where the project pipeline is well filled. The Solar Millennium Group is simultaneously developing several major projects in the southwestern states, including the world’s largest solar energy facility in Blythe, California. The power plant location with four plants will have a total capacity of 1,000 MW when finished. Another 500 MW each are projected for additional locations in Nevada and California. In order to be able to master the complex tasks involved with these projects, the Company is currently focusing on staff expansion.

A further share of issue proceeds is budgeted for the intensification of project development all over the world. Tapping into new markets and developing concrete projects requires investments, such as feasibility studies, the measurement of meteorological data, location analyses, securing of land, consulting, environmental analyses and the provision of securities. When partners enter into the projects after the development phase has been concluded, these costs are usually reimbursed.

The bond can be subscribed until the entire volume is placed, but by 6 March 2012 the latest. Solar Millennium Invest AG, a subsidiary of Solar Millennium AG, was assigned with the sales and marketing of the bond. As a financial services company, Solar Millennium Invest AG is subject to the requirements set forth in the laws on banking (Kreditwesengesetz) and the trading of securities (Wertpapierhandelsgesetz) and the corresponding notification and audit obligations. The company was certified by the Federal Financial Supervisory (BaFin) and is a member in the German Compensatory Fund of Securities Trading Companies (EdW).