Global law firm Dentons advised the European Investment Bank (EIB) and Natixis Corporate & Investment Banking (Natixis CIB) on the signing of two facilities agreements intended, among other things, to re-finance existing financial indebtedness and finance the construction of a new 44.80 MW wind farm, “Vento di Vino 2”, in the Municipality of Mazara del Vallo (TP), Sicily. Libeccio is a project company, owned by Fabbrica Energie Rinnovabili Alternative and Byom, which already operates the 24 MW “Vento di Vino 1” wind farm in the same Municipality.
The overall financing, qualified as a green loan, was structured on a project finance basis and provides for several facilities for a total amount of approximately €96 million, of which €42 million was provided by EIB and €55 million was provided by Natixis CIB.
The project involves the coexistence of a “brownfield” project already in operation since 2011 (Vento di Vino 1), which still benefits from a limited residual incentive period, and a “greenfield” project (Vento di Vino 2) that will benefit from the 20-year incentives provided by current regulations, and awarded under Auction No. 13 of February 9, 2024 pursuant to the RES Decree of July 4, 2019. Therefore, the financing was structured on the basis of a residual “merchant” risk portion alongside the incentivized revenue component.
Dentons advised the lending banks EIB and Natixis CIB – the latter as Sole Underwriter, Structuring Mandated Lead Arranger & Bookrunner, Agent, Commercial Facilities Lender, Green Loan Coordinator and Issuing Bank – on the legal due diligence, structuring of the entire transaction, review of the project contracts, and drafting, negotiation and finalization of all the finance documents, including those related to the previous issuance of the GSE definitive guarantee for the greenfield project. Partner Luigi Costa, Head of Projects, Energy and Infrastructure for Italy, led the team, which included managing counsel Ginevra Biadico, senior associate Silvia Lazzati, junior associate Alice Bixio, and trainees Anna Zanoni, Giulia Bellantoni and Giulia Brevi.
