Freshfields Advises KFW IPEX-BANK GMBH on a $165 Million Project Financing of a Solar Electrical Generation and Storage Facility in Osceola, Arkansas

Freshfields represented KFW IPEX-BANK GMBH (“KfW”), as mandated lead arranger, facility agent and senior project lender, on a $165 million project financing of a solar electrical generation and storage facility, as well related substation equipment, in Osceola, Arkansas (the “Project”), to be owned and developed by Green & Clean Power LLC (“GCP”). Electric power generated by the Project will be used by Hybar LLC (“Hybar”) to recycle and melt scrap metal in the production of 630,000 tons of rebar annually in Hybar’s steel recycling and rebar project in Arkansas.

Freshfields also represented KfW on a limited recourse financing for Hybar’s steel recycling and rebar project in Arkansas, which is under construction.

The Project will be able to store both solar-generated and grid-supplied power which will allow Hybar to optimize the overall all-in cost of its power consumption. The combination of Hybar’s 100% recycled raw materials (scrap metal), coupled with its access to high-volume renewable power is expected to significantly decrease Hybar’s steel production emissions.

Additionally, Freshfields advised KfW with respect to the interaction of its financing with an additional facility granted by the Arkansas Teacher Retirement System of up to $100 million, the proceeds of which will be used to repay KfW’s financing.

The Freshfields team was led by partner Melissa Raciti-Knapp and associates Luis Salomon, Carolina Romero, Thomas Heilborn, Sydney Hallisey and Madeline Goodlad, with support from partners Stephanie Brown Cripps, Joe Soltis and Lori Goodman and associates Maylin Meisenheimer and Lina Zhu.