Global law firm Dentons has advised BayernLB as bridge lender and agent, and EKF, Denmark’s Export Credit Agency, as lender, on a loan financing for RWE AG. The funding will be used for two offshore wind farms of RWE, one in Germany (Kaskasi) and one in England (Sofia). The joint landmark transaction is structured as a long-term € 1 billion facility providing RWE with a high degree of flexibility as it incorporates a € 500 million bridge facility as well as options for a floating and fixed interest rate basis.
The 342 MW offshore wind farm Kaskasi is located in the North Sea approximately 35 km north of the German island Heligoland. Its 38 turbines from Siemens Gamesa will generate enough electricity to supply the equivalent of about 400,000 German households. Kaskasi is expected to be completed by the end of 2022. The 1.4 GW Sofia offshore wind farm will be located at Doggerbank, 195 km from the north-east coast of the UK. It will be equipped with 100 turbines from Siemens Gamesa and will supply green energy to around 1,200,000 UK households; it is planned to be operational by 2026. The procurement of Danish equipment for the offshore wind farms enables RWE to benefit from EKF’s direct loan program.
Johannes Anschott from BayernLB comments: “BayernLB is pleased to structure this tailor-made transaction in cooperation with EKF and RWE. This innovative deal is an outstanding example for our clear dedication to the green transition and renewable energy.”
“RWE is investing heavily in the energy transition. In line with our ‘Growing Green’ strategy, we aim to expand our high-performance and environmentally friendly power generation capacity to 50 GW worldwide by 2030. The financing provided by BayernLB and EKF diversifies our funding sources by adding a commercially attractive, replicable financing instrument to support our significant growth ambitions,” states Michael Müller, CFO of RWE AG.
Under the leadership of Dr. Axel Schlieter, Dentons provided comprehensive financing advice to BayernLB and EKF. Schlieter and his team regularly advise lenders and borrowers on ESG-related credit facilities and sustainable finance loan structures in the renewable energy and infrastructure sectors.
“We are pleased to have been able to support this important transaction with our long-standing expertise in renewable energy and sustainable finance. ESG and export credit agency backed financings in the energy sector are among the strengths of our Banking and Finance practice”, says Axel Schlieter.
