IPPToday #321: NORD/LB arranges financing for 475 MW wind project in Sweden
- Norddeutsche Landesbank (Nord LB)
- Credit Suisse Energy Infrastructure Partners (CSEIP)
- Euler Hermes
- Watson, Farley & Williams
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NORD/LB Norddeutsche Landesbank has announced that it has successfully arranged project financing for the 475 MW Nysäter wind farm project in Sweden of around EUR375 million (~US$430 million).
The project will deliver one of Europe’s largest onshore wind farms and is being developed jointly by E.ON and Credit Suisse Energy Infrastructure Partners (CSEIP). The 474 MW cluster will comprise the Hästkullen (307 MW) and Björnlandhöjden (167 MW) wind farms, located near the city of Sundsvall, circa 395km north of Stockholm, in central Sweden.
Construction of the wind farm is scheduled to start in 2018 and expected to be completed by end of 2021. The wind farm will be equipped with 114 turbines from the German manufacturer Nordex Group. The output of the turbines varies between 3.9 and 4.4 MW depending on the location and they will have a tip height of up to 220 meters.
Total debt for the project is around EUR375 million (US$428.1 million). The financing consists of EUR340 million (US$388.1 million) debt facilities with tenors of up to 18 years, and a suite of ancillary and standby facilities.
The financing includes an envisaged ECA backing by Germany’s Euler Hermes. NORD/LB is acting as Mandated Lead Arranger, ECA advisor and underwriter, advised by Watson Farley & Williams.
A fund advised by CSEIP will hold 80% of the joint venture, while E.ON will build and operate the wind farm under a long-term O&M agreement and retain a 20% equity stake in the project. The total investment amounts to around EUR500 million (US$570.8 million).
The project is supported by a power purchase agreement (PPA) signed with a global energy major providing a comprehensive set of risk management and other services to the project.