The new debt facility comprises a CZK497.8 million (US$21 million), 10-year term loan together with interest rate swaps both of which are provided by ?eská spo?itelna, a member of Erste Group which has participated in two other EnerCap project financings.
The windfarm, which is the third largest in the Czech Republic, was originally financed by the Austrian lender Investkredit which was subsumed into its parent Volksbank in 2012. Following a bailout by the Austrian state, Volksbank put its remaining loan book inclusive of the Horní Lod?nice debt up for sale earlier this year. Facing uncertainty over the future owner of its senior debt, EnerCap opted to refinance and prepay the existing loan. Additionally, on top of the prepayment deal secured with Volksbank, there was an opportunity for the windfarm to lock in historically low Czech koruna borrowing costs under the new loan.
Constructed in 2008-9, the Horní Lod?nice windfarm comprises nine Vestas V90 2.0 MW wind turbines for a total initial installed capacity of 18 MW. It is located in the east of the Czech Republic near the city of Olomouc.
Shane Woodroffe, partner at EnerCap Capital Partners, stated:
“We’re delighted to secure this refinancing for the Horní Lod?nice windfarm which was one of the first acquisitions by the EnerCap Power Fund and which has proven itself to be a strong investment. The outcome of the Volksbank loan book sale was uncertain, and we took the opportunity to create further value in one of our projects, something that has been difficult in Central Europe in recent years. Now with all of the Fund’s projects in full operations, we are evaluating potential exit strategies.”
Frantisek Havrda, head of the financing department in ?eská spo?itelna, commented:
"We've been regularly providing financing to projects focusing on renewable sources. The opportunity to support EnerCap Power Fund in refinancing a major windfarm is quite remarkable, given the limited amount of windfarms in the Czech Republic."