Nord/LB funds 474-MW Swedish wind complex of E.on, Credit Suisse

Norddeutsche Landesbank, also known as NORD/LB, has provided financing for the construction of a 474-MW Swedish wind project of E.on SE (ETR:EOAN) and Credit Suisse Energy Infrastructure Partners (CSEIP).

The financing, the amount of which was not disclosed, includes an envisaged export credit agency backing (ECA) by German credit insurance company Euler Hermes, Watson Farley & Williams said on Wednesday. The London-based law firm advised Nord/LB on the transaction.

The 474-MW cluster, worth around EUR 500 million (USD 570m), was developed by German energy group E.on and consists of the 307-MW Haestkullen and 167-MW Bjoernlandhoejden wind projects. The two plants will be installed near the city of Sundsvall in Vaesternorrland County, using a total of 114 turbines by Germany’s Nordex SE (ETR:NDX1).

As part of the financing agreement, a fund advised by CSEIP bought an 80% stake in E.on Wind Nysater AB, the company owning the approvals for the two projects. In turn, E.on will keep a 20% interest in the particular entity and take care of the two plants’ operations and maintenance (O&M) following completion.

The wind parks will operate under a power purchase agreement with an unnamed “global energy major. The off-take deal will be one of the largest ones in Europe, according to the statement. On unveiling the project last week, E.on said that construction works are seen to start this year and be completed by the end of 2021.

(EUR 1.0 = USD 1.139)

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