Hogan Lovells advises international banks on 180 million Euro debt bridge financing facility for Encavis AG

Hogan Lovells advises international banks on 180 million Euro debt bridge financing facility for Encavis AG

Press releases | 08 September 2023

Led by partner Carla Luh, global law firm Hogan Lovells has advised a consortium of banks on a EUR 180 million non-recourse revolving debt bridge financing facility to support photovoltaic projects of Encavis AG.

Hamburg-based wind and solar park operator Encavis agreed on a credit line with Dutch financial institutions ABN AMRO and Rabobank to support solar photovoltaic projects in its core markets, namely Denmark, Germany, Italy and Spain.

The non-recourse debt bridge financing facility will allow Encavis Bridge Financing GmbH, a fully owned subsidiary of Encavis AG, to finance ready-to-build (RTB) solar projects acquired from Encavis’ Strategic Development Partners (SDPs) as well as operating projects acquired in the four mentioned countries. The debt bridge financing facility also allows Encavis to bundle smaller individual projects into sizeable project portfolios to improve the structuring and the negotiation of Power Purchase Agreements (PPAs) and to achieve favorable terms and conditions for take-out under long-term project financings, providing a substantial contribution to the realisation of the Accelerated Growth Strategy 2027.

The debt bridge financing facility includes a EUR 150 million Revolving Debt Bridge Facility, as well as a EUR 20 million Letter of Credit Facility and a EUR 10 million VAT Facility, which can be utilised in EUR and DKK. The tenor of the debt bridge financing facility is three years which can be extended twice for one year each for a total tenor of up to five years. In addition, the financing facility includes an “Accordion Increase” mechanism under which Encavis can further increase the financing amount to up to EUR 310 million with existing lenders as well as new lenders joining the financing

Hogan Lovells team for the banks

Germany: Tobias Ulbrich (Associate), Georg Jöcker (Associate), Dr. Carla Luh (Partner), Valentine Stein-Lüttges (Projects Associate), Lennart Lautenschlager (Counsel), Oliver Hamilton (Senior Associate) (all Corporate/ Finance)

Spain: Alfredo Barona (Partner), Miguel Mallo (Associate)

Italy: Carlo Massini (Partner)

Partner law firm in Denmark: Kromann Reumert