(Bloomberg) Amara Bonds Drop as Tariffs to Upend Solar Panel Supply Chains

By Edward Clark | 08 April 2025

(Bloomberg) -- Bonds issued by solar panel distributor Amara have sunk 11 cents on the euro since US trade tariffs were announced last week, reflecting the risk that Chinese products may be diverted into Europe and saturate the market. 

Amara’s €267.5m 10.25% secured notes due in July 2028, issued by Green Bidco, have fallen to 69 cents, according to pricing data compiled by Bloomberg.

Most of the drop occurred on April 4 and April 7, with the move stabilizing on Tuesday Solar panel distribution makes up the core of Amara’s business and analysts expect the price of solar panels in Europe to come under pressure after the tariff news Chinese producers that were selling solar panels into the US may now start shipping them to Europe, said Wolfgang Felix, founder and senior analyst at credit research firm Sarria

“This increase in supply will reduce the price of the solar panels in Europe,” Felix said, adding that panels are made in large factories with minimum loads, which cannot just turn off production

At the same time, European interest and investment in renewable energy is starting to slow down, adding to pressure on Amara, Felix said

The company did not immediately respond to a request for comment

NOTE: Amara’s credit rating was downgraded by Fitch to CCC+ in February; the ratings agency cited weak sector trends, negative free cash flow generation due to lower-than-expected profitability and capital expenditure and working capital outflows