Quanta Launches $10B Green Bond For Waste Heat Recovery

Quanta Global Capital Limited ("Quanta") has made public a $10 billion issuance of green bond, which would be used to attract environmentally aware investors and underpin its first-of-its-kind waste heat recovery technology. The move emphasizes the company's dedication to limiting climate change along with guaranteeing robust financial payback. The five-year bond, which has a yearly coupon rate of 7.5%, is being organized into 100,000 Preferred Notes with each Note being valued at $100,000. Annual interest will be paid every February to the investors, while the bond will be listed on Nasdaq Stockholm.

The issuance is covered by an AA-rated insurance wrap and collateralized over Quanta's thermoelectric waste heat recovery assets. Nasdaq Stockholm was selected strategically for its leadership in sustainable finance. The bourse has witnessed an acceleration in listings of green bonds, and sustainable bonds covered 36% of all new bonds listed in 2024, compared to 31% in the prior year. Nasdaq has highlighted the role of the United Nations Sustainable Development Goals (SDGs) in sensitizing investors towards meaningful green investments along with financial viability.

Waste heat recovery technology, the focus of Quanta's investment, has shown great potential to lower emissions and improve energy efficiency. The company's Smart Thermoelectric Waste Heat Generator (STWHG) is leading the way in this technology, providing a more efficient way to address climate change than direct reduction of emissions. Studies by Environment Systems Research reveal that waste heat recovery makes a more significant contribution to global warming mitigation than direct greenhouse gas reduction measures. Another report by McKinsey on sustainability also emphasizes the economic benefit of the technology, pointing out that waste heat saving through recoverable waste heat could be equivalent to the yearly price of Europe's natural gas imports.

STWHG technology has been thoroughly tested, validating its economic and environmental value. With a mere five-year payback period, the technology promises handsome returns on investment. The $10 billion of money raised by issuing the bonds is estimated to produce an average of $18.4 billion of yearly electricity revenue. Apart from immediate revenue, Quanta projects impressive financial returns through carbon credits, tax breaks offered by the government, and other green energy benefits. These additional incentives are projected to elevate net profits beyond what is earned solely from electricity generation.

Quanta’s move aligns with the broader industry shift toward sustainable finance, as seen in recent green bond issuances like Iberdrola’s €400 million share-linked green bond. With climate-conscious investments gaining momentum, Quanta’s bond is expected to attract institutional investors seeking both strong returns and environmental impact.

By integrating innovative waste heat recovery solutions with a profitable investment opportunity, Quanta is establishing a benchmark in the green finance industry. Its strategic listing on Nasdaq Stockholm and focus on sustainability reflect a bright future for the company and its investors alike.