Hamburg-based wind and solar park operator Encavis AG listed on the MDAX of Deutsche Börse AG (Prime Standard; ISIN: DE0006095003, stock exchange symbol: ECV) closed again a non-recourse project (re)financing of a portfolio of five solar PV plants located in the Netherlands aggregating to an overall generation capacity of 74 MWp. All plants are operational since 2021 and benefit from the Dutch incentive scheme SDE+, which provides for a feed-in tariff for approx. 15 years.
The financing of the Willem projects in the total amount of EUR 47.7 million and with a maturity date of June 30, 2039, consists of a „Floating Rate Facility“, with the floating base rate being hedged by an interest rate swap, in the amount of EUR 24.7 million, a „Fixed Rate Facility“ in the amount of EUR 18.7 million and a “Debt Service Reserve Facility” in the amount of EUR 4.0 million, and was provided by Rabobank.
Encavis AG will benefit from an inflow of liquid funds of EUR 33 million in total. These proceeds consist of the valuation of the Floating Rate Facility (minus transaction costs) and a distribution of EUR 9.2 million directly from the Willem projects.
“We are glad, that, besides the introduction of a Floating Rate Facility, we could maintain the already existing Fixed Rate Facility within the framework of the refinancing with Rabobank, whose terms and conditions, we wouldn’t have had any chance to achieve alternatively in the current interest rate environment. A great result that sets free liquidity for further investments,” Dr Christoph Husmann, CFO of Encavis AG, welcomed the borrower-friendly terms and conditions of this refinancing on holding level.
With this transaction, ENCAVIS optimises again the structures and costs of existing project financings and benefits of an enhanced leverage ratio as well as streamlined project structures for the ongoing operational management of the portfolio. All three previous refinancing transactions have been completely structured, arranged and managed by Encavis AG‘s own inhouse Project Finance team, established in 2019. In all transactions the Encavis Group benefitted from the ongoing low-interest environment and has captured the positive developments in the debt market particularly for photovoltaic plants.