Profil:
Polenergia SAPolenergia renewables' Baltyk II and III OWF's have deals for EUR 5.8 bln to finance construction
The project companies for OWF Baltyk II and OWF Baltyk III have concluded agreements to finance the construction of the offshore wind farms. Offshore wind farms Baltyk II and offshore wind farm Baltyk III will be financed under the project financing formula for the incurred expenditures of approximately EUR 2.9 billion each, listed renewables group Polenergia said in a market filing.
The financing period covers the construction period and a further 22 years. The agreements have been signed with a consortium of about thirty Polish and foreign financial institutions.
As stated, the loan will be disbursed once the standard conditions precedent have been met.
Polenergia is responsible for contributing approximately EUR 145 million, which should be paid into the company's dedicated bank accounts in full before the first loan disbursement. The release of funds from the escrow accounts to fund Polenergia's contribution will be staggered until 2028.
In the event of project cost overruns or lower-than-expected cash flows during the start-up period of the projects, the company may be required to make an additional capital contribution of up to EUR 280 million. In this respect, the obligation will be secured by bank guarantees issued on behalf of the company and a corporate guarantee.
According to the agreements, the project companies will have the possibility to use additional and reserve credit lines in the total amount of approximately EUR 230 million in the case of OWF Baltyk II and approximately EUR 240 million in the case of OWF Baltyk III.
The interest rate for project finance will be calculated on the basis of variable interest rates based on EURIBOR or WIBOR, plus appropriate margins.
Repayment of the project finance will be based on future cash flows generated by the OWF Baltyk II and OWF Baltyk III projects.
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