onshore wind dusk

WFW advises M&G Investments and Sequoia on a €40m mezzanine financing facility as a green bond

19 November 2015


A Watson Farley & Williams (“WFW”) Paris office team has advised two London-based subscribers, M&G Investments and Sequoia Economic Infrastructure Income Fund, in relation to the subscription of green bonds for a total amount of €40 million. The bonds are in order to refinance the equity attached to a 100 MW portfolio of 13 wind and solar projects owned by French developer Neoen.

The projects were financed separately with senior debt and the 13 special purpose vehicles bundled into a holdco. The mezzanine financing, a 18-year fully-amortising facility, was then raised at holdco level. This structure allows Neoen to recycle its capital for new deals, while still keeping 100% ownership of all 13 assets.

Watson Farley & Williams advised M&G Investments and Sequoia Economic Infrastructure Income Fund on the legal and tax aspects of the transaction, including the drafting of all of the documentation, the issuance and the subscription of the bonds.

The Watson Farley & Williams Paris team was led by partner Laurence Martinez-Bellet (Finance) assisted by partners Daisy East (Finance, London), Laurent Battoue (Public Law / Regulatory), Arnaud Félix (Corporate), Romain Girtanner (Tax), and associates Marie-Laure Brun, Lamia Benzine, and Marie Lesschaeve (Finance), Julie de Bréon, Audrey Bertrand, Nicolas Demeocq (Public law / Regulatory), Maxime Leoni (Real estate), Charles-Douglas Fuz (Corporate) and Adrien Altomare (Tax).

Neoen was assisted by De Pardieu Brocas Maffei on the legal aspects and by Green Giraffe in raising the mezzanine financing. The De Pardieu Brocas Maffei team was led by partner Jean-Renaud Cazali (Finance) assisted by Thomas Bréart de Boisanger (Corporate) and associates Guillaume Sauvage (Finance) and Grégoire Balland (Corporate). The Green Giraffe team was composed of Nicolas Gourvitch, Bastien Rocheteau and Henri Gouzerh.

Laurence Martinez-Bellet comments: “We are very proud to have successfully assisted our clients on this non-convertible bond financing as it is the first mezzanine debt transaction for M&G Investments and Sequoia on French renewables projects. This financing reflects an increasing trend in the French and European renewable energy markets looking for alternative financing solutions.”