Donkey Republic restructures debt to ensure reduced cost of capital and increased financing flexibility
Investor news no.02 -2026
Following the capital raise of DKK 75.0 M. in February 2026 (ref. company announcement 06-2026), Donkey Republic has completed a planned and comprehensive debt restructuring to reduce cost of capital and secure flexible debt instruments to finance future fleet expansion. The new debt structure will optimize conditions for achieving the 2030 ambitions outlined in the company strategy "Ride and Do Well" as the following components are implemented:
- Full repayment of current debt to EIFO (Danmarks Eksport- og Investeringsfond) by the end of June 2026
- Full repayment of current debt to Nefco (Nordic Environment Finance Corporation) by the end of September 2026
- Establishment of loan with AL Sydbank to finance 75% of the CAPEX investment for the fleet roll-out of the two contractual secured bike sharing systems in Ruhr and Düsseldorf.
- Establishment of a revolving CAPEX credit facility at AL Sydbank to accommodate up to 100% debt financing of future fleet expansions.
The above components transition the company away from dependency on state-backed debt institutions towards a debt structure fully based on commercial market terms with AL Sydbank as the main lender. The debt restructuring reflects Donkey Republic's operational maturity and it will reduce financing costs significantly.
Furthermore, the new revolving CAPEX credit facility marks a milestone in our financial flexibility, allowing the company to 100% debt finance additional bike orders as market opportunities arise. Thereby, the facility supports execution of the company strategy and achievement of its 2030 ambitions, contributing to an expected increase in return on invested capital (ROIC). Funding of the 2030 growth plan is not expected to include further equity raises.
Due to the early repayment of debt to EIFO and Nefco, it will incur a one-off financing cost effect of approximately DKK 2.5M. in 2026. The early repayment penalty fee will be more than offset by substantially lower interest costs from 2027 onwards.
"We are delighted to successfully complete a full debt restructuring which will provide substantial interest savings for the company in the years ahead. Essentially, our new agreement with AL Sydbank establishes the flexible financing necessary to expand our fleet as market opportunities develop. Going forward, the company is able to finance fleet expansions without additional debt arrangements or equity raises. We want to express our gratitude to our partners at EIFO for their engagement during the company's early stages. EIFO has provided essential debt during critical growth phases, and now EIFO has fulfilled its mission and supports the full transition to commercial lenders" Thor Möger Pedersen, CEO