NEAG bags EUR 35m in debt for renewables in Germany, Benelux

Infrastructure investor and power producer NEAG Norddeutsche Energie AG has secured EUR 35 million (USD 41m) in debt to finance renewable energy projects in several countries, the lender said today.

Capcora GmbH, which announced the deal on Tuesday, was the exclusive financial advisor in the deal and was responsible both for the debt structuring and sourcing. It noted that the selected financing structure allows the exchange of projects during the term of the debt facility.

Part of the fresh capital will be allocated to finance around 300 MW of greenfield projects in Germany, France and Belgium, while another portion will be used to provide bridge financing to wind projects that are currently under construction in Germany. The last pot will be earmarked for NEAG’s assets in operation.

The financing will be extended in three different tranches as a three-year revolving credit facility that will include senior and mezzanine elements. It will be provided to NEAG’s newly set up holding company NEAG Norddeutsche Energie Development GmbH.

Via the new debt, NEAG will be able to speed up its expansion in Germany and Benelux. “First of all, we can limit our equity requirements during the various stages of acquisition. Furthermore, we can easily replace projects, navigate liquidity into projects where we demand it and at the same time flexibly redeem tranches as soon as cheaper sources of financing can be accessed,” the company’s CEO Christian Bahringer said.

(EUR 1.0 = USD 1.172)

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