Ilmatar May Sell Shares to Help Fund 450 Million-Euro Wind Plan

Ilmatar Windpower Oyj may sell new shares in an initial public offering next month as the Finnish developer seeks funds for a 450 million-euro ($583 million) expansion.

The Helsinki-based company may list on the Nasdaq OMX First North exchange as it pursues a plan to build 300 megawatts of Finnish wind projects by the end of 2015, Chief Executive Officer Kalle Pykala said today by telephone. Ilmatar would hope to raise about 10 million euros in a “first phase,” he said.

Finland, which lags behind neighboring Sweden and Norway in wind-energy output, is seeking to add turbines by offering generators a feed-in tariff, or premium rate for the power they produce. It had 197 megawatts of wind capacity at the end of 2011, compared with almost 3,000 megawatts in Sweden and 520 megawatts in Norway, European Wind Energy Association data show.

“Finland is a very, very early-stage wind market, however what is important is that the feed-in tariff system is very attractive,” Pykala said. Wind farms get 105 euros a megawatt- hour until 2015, when the rate drops to 83.50 euros. The system offers about twice the megawatt-hour rate of Sweden, where a green-certificate incentive program operates, he said.

Share-sale proceeds would initially help fund a four- turbine project in Raasepori, according to the CEO. The company would use debt to finance about 70 percent of its 300-megawatt plan, he said.

Ilmatar, funded by shareholders and venture capital since it started in 2009, is advised by Pohjola Bank Plc and hasn’t yet decided on the IPO, Pykala said.

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To contact the editor responsible for this story: Reed Landberg at

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