Innovative Financing: Capcora Supports NEAG in Onshore Wind Projects

Frankfurt, Germany - Hamburg-based power producer NEAG Norddeutsche Energie AG (NEAG) is securing an innovative financing facility for onshore wind projects in the development phase, projects under construction and a portfolio of existing projects.

The revolving credit facility in an amount of 35 million euros (€ million) includes both senior debt and mezzanine elements and was secured at the level of the newly established holding company NEAG Norddeutsche Energie Development GmbH. Capcora, a Frankfurt-based consulting firm specialising in real assets and the procurement of equity, mezzanine and debt capital for energy and infrastructure projects, was mandated as exclusive financial advisor and was responsible for structuring and sourcing.

The financing structure consists of three different tranches with different use of funds. One tranche is dedicated finance greenfield projects in Germany, France and Belgium with an expected total capacity of 300 MW. Another pot will be used to provide bridge financing to German wind projects under construction. The last tranche was granted based on operating projects. According to Capcora, the financing structure is unique as it covers three types of assets in one facility. Furthermore, it was structured in the format of a revolving facility which allows the exchange of projects during the term of the facility, which is 3 years.

"A facility structured in such a way, tailored to the needs of an IPP is not common in the market," says NEAG board member Bähringer, pleased with the financing solution developed with Capcora. With this instrument NEAG can accelerate the growth of its portfolio in Germany and the Benelux countries in various aspects, Bähringer continues. "We are happy to expand our cooperation with NEAG by implementing another landmark transaction," added Capcora Senior Vice President Bernhard Hofmann. The combination of the instrument of a revolving facility covering both greenfield and brownfield projects is fairly unique in the market.

Source: IWR Online, Nov 11 2020