Onshore Wind

WFW advises MPS on €21m refinancing of Belenergia

18 May 2016


International law firm Watson Farley & Williams (“WFW“) advised MPS

Capital Services Banca per le Imprese S.p.A. (”MPS”) on the approximately €21m refinancing and partial financing, on a project finance basis, of a Belenergia S.A.’s (“Belenergia”) photovoltaic portofolio located in the Apulia region of southern Italy.

MPS is the corporate and investment banking arm of MPS Group, the third Italian Banking Group, created in 2007 through the integration of investment bank MPS Finance, and MPS Banca per l’Impresa S.p.A., which focused on project finance, corporate finance and special lending. Belernergia is a Franco-Italian renewable energy group.

The transaction was preceded by a corporate reorganisation of Belenergia Group through the implementation of a merger procedure, whereby Puglia Energia S.r.l., Solar Solution Puglia S.r.l. and PE Invest S.r.l. were merged by incorporation into Solaria Real Estate S.r.l.

The transaction was highly complex and strategically structured by MPS and WFW to mitigate the effects of the “Spalma Incentivi”, improve the portfolio’s risk management profile and ensure sustainable financial ratios thanks to intercompany synergies. The “Spalma Incentivi” decree forces PV plant owners to either take a cut on the rate or duration of the feed-in tariff for the solar energy they provide, even on plants installed and financed before the decree was passed.

The WFW Italy team was led by Rome finance partner Pierpaolo Mastromarini, assisted by associates Michele Arruzzolo (as project manager), Daniele Pompei and Clara Matranga. Senior associate Elena Macchi advised on all regulatory and administrative matters.

Pierpaolo commented: ““We are very pleased to have successfully advised our client on this strategic transaction. This demonstrates once again our unrivalled financial and regulatory expertise and experience in the Italian renewable energy space”.