WPD, together with Commerzbank and Norddeutsche Landesbank (NORD/LB), has achieved financial close on a 188MW Finnish wind project.
Karhunnevankangas (Karhu), located in the Osterbotten region of western Finland, will produce electricity for the paper company UPM Kymmene via a long-term power purchase agreement (PPA).
In addition to the participation of the two banks, Euler Hermes Aktiengesellschaft also took part in the financing, which was also responsible for the audit in obtaining the export credit guarantee from the German government.
The financing package of approximately €220m covers the construction and operating phases and includes, among other things, a long-term Euler Hermes facility, various guarantees and an equity bridge facility.
“We are very pleased that we successfully implemented this important step in a short period of time,” said WPD Europe commercial project management head Ralf Ketteler.
“After the good cooperation with Commerzbank and NORD/LB in the Tohkoja project, we now have added the next chapter with Karhu. Everyone involved can be proud of what has been achieved.”
“Mark Hubenthal, Director Origination Project Finance of Commerzbank’s Center of Competence Energy, assesses the project as follows: “This is a highly exciting and challenging transaction, especially with regard to market price issues and PPA design, which proves that complexity can be mastered together in good partnership.”
WPD has already realised four wind farms in Finland and has a pipeline of approximately 1000MW of projects in various stages.
The company thus further confirms its position as a competent and reliable partner in the Finnish energy market.