Industrial gas system manufacturer HyGear has issued a 7% bond to raise multi-million-euro funds as it targets further growth.
Instead of one-off sales, HyGear is now focusing on increasing demands for ‘Gas as a Service’ (GaaS) solutions, where customers subscribe to gas supply services – a movement in the market that the company claims is on the rise.
The company explained that this business idea initially requires more working capital in the short-term but will increase the profitability of HyGear over the long-term.
As a result, the Netherlands-based business will acquire €2.5m ($2.7m) via trading platform NPEX. The bonds, each worth €1,000 ($1,060), will mature in 2023.
CEO Marinus Van Driel explained, “We sell our systems globally and we saw growth particularly in our new GaaS solutions. The subscription model is very interesting but we encountered a lack of working capital in the short-term. The amount that we acquire from the bond will be used to accelerate the further growth of the company.”