Watson Farley & Williams has advised Encavis AG (“Encavis”) on the acquisition and a multicurrency €32m equivalent financing of two Danish solar parks from European Energy. The loan was provided by Rabobank, which concluded its first transaction in Denmark jointly with Encavis AG.
The loan ends on 30 June 2040 and was arranged and structured internally by Encavis. The principle component of the loan is a term facility fully secured by means of both an interest rate swap and a cross-currency swap for its entire term.
Encavis acquired the two solar parks, the 34 MWp Svinningegården, and 71 MWp Rødby Fjord, both located in Denmark’s Zealand province, from European Energy at the end of 2021. The parks produce electricity through long-term power purchase agreements (PPAs) with leading technology companies. Rødby Fjord also benefits from a 20-year feed-in tariff (FiT) agreement with the Danish Ministry of Climate, Energy and Utilities.
Hamburg-based Encavis acquires and operates both wind and solar parks and is one of the leading independent power producers in Europe with a total generation capacity of more than 3.3 gigawatts. It is listed on the MDAX of Deutsche Börse AG.
The WFW Germany Corporate team advising Encavis was led by Global Energy Sector Co-Head and Hamburg Partner Malte Jordan supported by Senior Associate Muteber Yalcin, with Partner Sven Fretthold and Associate Alejandra Hagedorn advising on the finance aspects of the deal.
Malte commented: “We are delighted to have advised Encavis on this important transaction for the Danish renewables sector. Our involvement highlights WFW’s leading expertise in advising on complex energy projects, especially those including PPAs”.
Bech Bruun acted as Encavis’ Danish counsel.