Donkey Republic secures €6.3 million from Nefco for expansion
Deal News | Jan 14, 2025 | Nordic Environment Finance Cor
Nefco, known as the Nordic Green Bank, has extended a €6.3 million loan to Donkey Republic, a leading bike-sharing service provider in Europe. This move is part of a €8.2 million debt facility that also includes participation from EIFO and Sydbank. This is the second loan from Nefco, following a €5 million loan in 2022 intended to support Donkey Republic's expansion across Europe. The new financing is intended to replace the existing loan and will aid in the strategic scale-up of the company. According to Sören Berg Rasmussen, Investment Manager at Nefco, Donkey Republic aligns well with Nefco's green objectives due to its contribution to the circular economy and environmental benefits. The funds will primarily be used to expand the company's bike fleet in 2025 and refinance existing loans. Donkey Republic is leveraging this new financing, along with its equity base, to pursue its growth plans aimed at reducing CO2 emissions and promoting greener city transport. Founded in 2014, the company operates in seven countries and 55 cities, targeting both micromobility and mid-distance transportation markets. In 2023, it contributed to a reduction of 528 tons of CO2 emissions.
Sectors
- Micromobility
- Green Finance
Geography
- Denmark – Donkey Republic is a Danish company and the financing involves Danish entities like Sydbank and EIFO.
- Europe – The expansion efforts and operations of Donkey Republic are focused across Europe, underlining the geographical relevance.
Industry
- Micromobility – Donkey Republic operates in the micromobility sector, specifically providing bike-sharing services, which are a key part of urban transportation solutions.
- Green Finance – Nefco, the financing provider, is focused on projects that align with sustainable and environmental objectives, placing this transaction under the green finance industry.
Financials
- EUR 6.3 million – The amount of the new loan provided by Nefco to Donkey Republic.
- DKK 61 million (approx. EUR 8.2 million) – The total debt facility involving Nefco, EIFO, and Sydbank.
- EUR 5 million – The amount of the previous loan Nefco provided to Donkey Republic in 2022.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Donkey Republic Bike ApS | Target | Company | A leading bike-sharing services provider in Europe, expanding its operations with new financial backing. |
| Nefco | PE Firm | Company | The Nordic Environment Finance Corporation, providing a €6.3 million loan to support Donkey Republic's expansion. |
| EIFO (Danmarks Eksport- og Investeringsfond) | Financial Partner | Company | A Danish export and investment fund contributing to the financial facility for Donkey Republic. |
| Sydbank | Financial Partner | Company | A leading commercial lender in Denmark, part of the consortium funding Donkey Republic. |
| Søren Berg Rasmussen | Investment Manager | Person | Investment Manager at Nefco, commenting on the alignment of Donkey Republic’s business model with Nefco’s objectives. |
| Christian Dufft | CFO | Person | CFO of Donkey Republic, discussing the benefits of the new financial arrangement for the company. |
| Niels Henrik Rasmussen | CEO | Person | CEO of Donkey Republic, highlighting the strategic alignment and growth plans of the company. |