London, 08 January 2015
Macquarie Capital, the principal investment, advisory and capital markets arm of Macquarie Group, today announced that it has entered into an agreement to acquire a 49.89% interest in Baltic 2, an offshore wind farm in Germany for around €720 million.
Macquarie Capital has partnered with Energie Baden-Württemberg AG (EnBW), one of the largest energy supply companies in Germany and Europe, to take a stake in the project with EnBW retaining the remaining interest. The 288MW wind farm in the Baltic Sea is currently under construction with project completion and financial close expected in June 2015.
The transaction was funded through a combination of equity from Macquarie Capital and debt financing from a number of commercial banks. The debt was structured and raised as a large tranche of HoldCo level debt, the first time this innovative transaction structure has been used in the German offshore wind sector.
Macquarie Capital is an active principal investor across Europe, both directly and in support of its advisory clients, and this transaction is Macquarie’s largest balance sheet commitment in renewable energy to date.
Mark Dooley, Head of Infrastructure, Utilities and Renewables, Macquarie Capital Europe said: “Macquarie’s strong balance sheet has allowed us to actively identify and invest in projects across Europe. We are particularly excited about this transaction as it signifies what we hope will be the first of many investments in offshore wind. Given the strong regulatory renewable energy regime, we see Germany as a key market for this type of investment going forward.”
Thomas Kusterer, Chief Financial Officer, EnBW said “EnBW has now successfully implemented its second participation model in the area of offshore wind energy. With deep experience in infrastructure, Macquarie Capital is the right partner and investor for such an ambitious project.”
Macquarie Capital has a solid track record in advising and investing in renewable energy projects across Europe. This includes the £150 million investment into Low Carbon to fund the construction of a portfolio of up to 300MW of UK solar projects and providing junior financing for Covanta’s €500 million Waste to Energy Project in Dublin, Ireland, one of the largest privately financed projects in power and infrastructure in 2014.
Macquarie Capital structured and arranged the debt package. Ashurst acted as legal advisor and EY acted as tax and accounting adviser to Macquarie Capital. Clifford Chance acted as legal advisor to the financing banks.
About Baltic 2
Baltic 2 is a 288MW offshore wind farm located in the German Baltic Sea. The project site is located 34km offshore in water depths of 23m to 44m. The Project will consist of 80 Siemens wind turbines, with 34 currently installed.