Wind power project developer Abo Energy is plummeting on the capital markets, resulting in substantial losses for investors. The company’s 2024 listed bond is now trading at only about 16 percent of its face value, effectively reducing the market value of many positions by more than 80 percent. Those forced to sell are realizing significant discounts, while the share price has also fallen by over 80 percent in a short period. Many private investors are suffering massive losses. (taz: 01.02.26)
Bond almost worthless – the market is pricing in repayment risks
The 16 percent price is not a “discount,” but a warning sign, because the market is treating the wind power developer’s bond as if it were in crisis. This not only drastically reduces the yield, but also undermines the expectation of timely capital repayment. Many private investors underestimate this signal because bonds are often considered defensive, but they can plummet in times of corporate distress.
The downturn came in stages, and this is precisely what exacerbated the damage. After the first profit warning in November, the bond price halved, and later it plummeted even further. This creates a double effect: First, the book value in the portfolio decreases, and then selling becomes a loss realization because liquidity is often only possible at a significant discount.
Loss forecast shocks – from 95 to 170 million euros
Abo Energy initially tightened its 2025 forecast to a loss of 95 million euros, and later to a consolidated net loss of 170 million euros, thus shattering confidence. Such sharp increases have a devastating impact because they invalidate planning assumptions and complicate loan negotiations. Investors then no longer see a problem in the details, but rather a risk in the system itself.
The company cites a “currently particularly challenging national and international market environment” as the cause. It also points to the mechanics of onshore wind auctions. Oversubscribed tenders reduce revenues because the expected feed-in tariffs are declining. At the same time, Abo Energy had to reassess projects, and as a result, special write-downs had a noticeable impact on its balance sheet.
Private investors caught in the crossfire – two bonds, high interest rates, high risk
Many affected individuals were drawn in through the bonds, as the minimum investment was €1,000. The first bond, issued in 2021, has a nine-year term and carries a 3.5 percent interest rate. Distribution was largely handled by the socially and ecologically responsible GLS Bank. This bond is not traded on the stock exchange, which makes the damage less visible, although the risk remains with the issuer.
The second bond, issued in 2024, had a volume of €80 million and offered a 7.75 percent interest rate, while it is listed on the stock exchange. It is precisely this tradability that now reveals the severity of the situation, as the price collapse immediately exposes the loss of capital. High interest rates appear attractive in prospectuses, but they lose all protective effect when the market reprices in the default or restructuring risk.
Standstill Agreement and Vote – Creditors Now Decide
Abo Energy needs a restructuring plan, and therefore the company entered into a standstill agreement with key debt providers. Banks will not terminate their loans for the time being while negotiations are ongoing, but this does not provide investors with any guarantee. On the contrary: In such phases, creditors often negotiate new terms, which can lead to extensions of the bond’s maturity or other reductions.
The holders of the 2024 bond are expected to vote shortly on joining the standstill agreement and on changes to the bond terms. An information session is scheduled for February 5, and the vote is to take place from February 10 to 12. This does not directly affect the 2021 bond because its terms are structured differently; however, the issuer risk remains a key factor.
SdK, Ecoreporter, “Black Box” – Investors Seek Leverage and Information
The information service Ecoreporter advises investors not to buy or sell the stock or bond at this time, but rather to wait for further developments. At the same time, the German Association for the Protection of Investors (SdK) recommends that bondholders unite their interests to present a united front to the company. A bondholders’ meeting is planned, at which management will report on the company’s situation. The election of a joint representative is also under consideration.
Information is considered scarce, as WirtschaftsWoche quotes the assessment: “For investors, Abo Energy is a black box in key respects.” While Abo Energy emphasizes that it possesses “a significant and valuable project portfolio,” short-term payment and refinancing capacity are paramount in the market. The sale of three solar projects in France, totaling 85 megawatts, does provide liquidity, but it does not replace a stable revenue base, and therefore the risk for investors remains acute.