Merkur debt re-jigged

MerkurSociete Generale Corporate & Investment Banking (SG CIB) acted as financial advisor, Mandated Lead Arranger (MLA) and restructuring & market hedge coordinator in the amended financing of the German 396MW Merkur offshore wind farm.

Merkur’s senior debt has been successfully amended on competitive terms, with a total financing volume of €1.5 billion.

The financing enables
Merkur to benefit from the current competitive debt market environment and to optimise debt pricing, leverage and tenor in the future post construction of the project. The existing facilities have been amended to enable a syndicate of 13 international lenders to participate.

In parallel with the amended financing,
Merkur has switched from the “compressed tariff” to the “base tariff” under the German Renewable Energy Act (“EEG”), therefore enabling the project to benefit from a longer period of guaranteed and stable income stream.

Sven Schulemann, Managing Director of
Merkur, explained: “Due to its leading position in the offshore wind industry and its accurate view of the market SG CIB is certainly always the right choice when it comes to financing in offshore wind. The team of SG CIB, however outperformed all our expectations and definitely had an enormous part in successfully delivering this complex transaction against the given very tight deadline.”

Yann Le Bot, Director, Energy Finance,  SG CIB commented: “We are delighted to have further accompanied Merkur and its shareholders on their exciting journey. After having acted as MLA and documentation bank in 2016 for the project’s initial financing, we are very glad to have been chosen to advise Merkur.

"Successfully breaking new ground by implementing a refinancing during construction of an offshore wind project is a first and something of which we can all be proud.”

Merkur is a joint venture owned by funds managed and/or advised by Partners Group (50%), Infrared (25%), DEME (12.5%), and Coriolis (12.5%), which is a joint venture of GE and L’Agence de l’Environnement et de la Maîtrise de l’Energie (“ADEME”) acting in the name and on behalf of the French State.

The project is located about 45km north of the island of Borkum in the German North Sea. Once completed, the offshore wind farm and its 66 GE Haliade 6MW turbines generate enough green energy to supply approximately 500,000 households per year.

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