BayernLB has announced the financing of eight solar PV plants of up to 5 MW each at five sites across England and Wales (UK), three of which are community interest companies (CICs).
BayernLB provided long term, secured project financing of circa £30 million (US$40 million) partly refinanced by the German KfW (Kreditanstalt für Wiederaufbau) renewable energy support scheme. The solar plants were acquired by the German asset manager Luxcara for its fund portfolio for institutional investors.
The eight plants are located in Thorne (South Yorkshire) and Arkwright (Duckmanton near Chesterfield) in England, and at Llancadle (Vale of Glamorgan), Teyrdan (Colwyn Bay) and Hafod (near Arbertillery) in Wales and each benefits from the FIT regime.
The projects at Arkwright, Teyrdan and Hafod are each divided into two, with one part being owned by a CIC, a type of company introduced by the United Kingdom government in 2005 under the Companies Act 2004 and designed for businesses that want to use their profits and assets for the public good.
BayernLB is an experienced and committed lender to the renewable energy sector, having for many years provided financing solutions to renewable energy companies. BayernLB is owned by the Free State of Bavaria and the Bavarian savings banks.
International law firm Watson Farley & Williams (WFW) advised BayernLB on both the English and German law aspects of the transaction, including the drafting of all financing documents and the legal due diligence process.