Boosting the European energy transition
BayernLB and EKF (Danish ECA) grant a EUR 1 billion earmarked corporate facility to Germany's Essen-based RWE AG, one of the world's leading suppliers of green energy. The funding will be used for two off-shore wind farms of RWE, one in Germany (Kaskasi) and one in England (Sofia). The joint landmark transaction is structured as a long-term EUR 1 billion facility providing RWE with a high degree of flexibility as it incorporates an initial EUR 500 million loan facility as well as options for a floating and fixed interest rate basis.
BayernLB arranged the facility. Dentons advised EKF and BayernLB as lenders legal counsel. Gorrissen Federspiel acted as local legal counsel to EKF. Freshfields acted as legal counsel to RWE.
“RWE is investing heavily in the energy transition. In line with our 'Growing Green' strategy, we aim to expand our green power generation capacity more than 50 GW worldwide by 2030. The financing provided by BayernLB and EKF diversifies our funding sources by adding a commercially attractive, replicable financing instrument to support our significant growth ambitions.” states Michael Müller, CFO of RWE AG.
"We are very pleased to have closed this agreement, where EKF is once again financing renewable energy projects with a total production capacity of more than 1.7 GW. The loan gives RWE the flexibility required to implement wind energy on a large scale, and we are happy to play a role in this. We are also looking forward to the new collaboration with RWE," says Werner Grub, Managing Director, EKF.
Johannes Anschott, board member of BayernLB, adds: “BayernLB is pleased to structure this tailor-made transaction in cooperation with EKF and RWE. This innovative deal is an outstanding example for our clear dedication to green transition and renewable energy.”
The 342 MW offshore wind farm Kaskasi is located in the North Sea approximately 35 kilometres north of the German island Heligoland. Its 38 turbines from Siemens Gamesa will generate enough electricity to supply the equivalent of about 400,000 German households. Kaskasi is expected to be com-pleted by the end of 2022. The 1.4 GW Sofia offshore wind farm will be located at Doggerbank, 195 km from the north-east coast of the UK. It will be equipped with 100 turbines from Siemens Gamesa and will supply green energy to around 1,200,000 UK households; its planned to be operational in 2026.