After project is delayed, Sif seeks flexibility with €175M bond issue 

In order to enhance its financial position as it awaits a final investment decision by a key client, Sif is to undertake a new Euro denominated senior unsecured bond issue with an expected issue amount of €175M and a three-year tenor may follow, subject to market conditions. 

The bonds are expected to be issued in July 2026. Sif intends to apply for admission to list the bonds on Euronext ABM or another exchange within six months of the issue date. 

The net proceeds from the bonds will be applied to repayment in full of the group’s existing term loan facilities and to finance general corporate purposes, including working capital. 

The company also recently provided an update on a project included in its order backlog for which it is in exclusive negotiations, and updated its production outlook for 2026.

“Over the past months, the developer of the North Sea project with which Sif is in exclusive negotiations, together with relevant governmental bodies, Sif and other supply chain partners have been working constructively to address the challenges faced by the developer to progress with the project,” said the foundations fabricator.

“We are pleased that the outcome of these discussions provides a solid basis for the developer, Sif, and other stakeholders to progress with the development of the project towards a final investment decision and, subsequently, to commence monopile manufacturing in a target window of May to August 2027.”

Sif said this agreement will ensure full capacity utilization across both production facilities for approximately nine months. “Based on our current tender activities we are confident in securing additional order backlog following completion of the exclusive negotiation project,” the company said. “This creates a clear path forward for Sif and all stakeholders to finalize all preparation and contractual work required to deliver this milestone project.”

At the time that the exclusive negotiation was announced in 2025, fabrication of the monopiles was expected to start earlier than is currently anticipated. This date has changed due to the challenges faced by the project developer. 

Sif will have a gap in its production schedule at both its sites in the first half of 2027. To avoid significant costs and operational risks in scaling down and subsequently ramping up at both sites between the two projects, and to ensure retention of our skilled, experienced and committed employees, the company has taken the decision to spread production of its existing backlog as far as possible into 2027, while maintaining contractual delivery schedules as agreed with customers.

“Consequently, we will produce less in 2026, and therefore the revenue associated with this production and approximately €40M of adjusted EBITDA will shift from 2026 to 2027.”

The company said it is taking active measures to manage its working capital and short-term liquidity, including the bond mentioned above.

“Following the contemplated bond issue, Sif will have a robust capital structure and sufficient financial flexibility extending well beyond the expected start of the exclusive negotiations project,” Sif said.

“Based on current market developments and tendering activity, we remain optimistic that long-term perspectives for offshore wind are healthy, albeit the short-term outlook remains challenging.”