Warsaw team advises banks on PLN 866m (€ 180m) financing construction of Poland's first large-scale hybrid solar-wind project with a capacity of over 200 MW

Global law firm Norton Rose Fulbright advised consortium of banks comprising ING Bank Śląski, PKO Bank Polski and mBank on PLN 766m (€ 163m)senior secured financing for the purpose of construction of Kleczew Solar & Wind project including 193 MWp PV plant and up to 19.2 MW wind farm located in Kleczew commune in Greater Poland and intercreditor relations with PFR Fundusz Inwestycyjny Fundusz Inwestycyjny Zamknięty Aktywów Niepublicznych which has provided subordinated loan. The value of the transaction amounted to PLN 866m (€ 180m).

The deal involved two layers of debt: one from senior lenders (i.e.: ING Bank Śląski, PKO Bank Polski and mBank) and one from junior lender (i.e. PFR), which required extensive discussions regarding intercreditor arrangements.

Transaction was carried out while a significant regulation regarding maximum electricity prices was adopted.

Kleczew Solar & Wind will be one of the largest renewable energy projects in Central and Eastern Europe, and the first large-scale project in Poland to combine solar and wind energy. The farm is located on post-mining land in the district of Konin. In the first phase of the project, construction of which has already begun, 193 MWp of photovoltaic panels and approximately 12 MW of wind turbines will be connected to the grid. Thanks to the use of advanced technologies, including state-of-the-art n-type photovoltaic panels, the energy generated at the Kleczew power plant will meet the demand of approximately 100,000 households. In subsequent expansion stages, the power plant can be increased to approximately 250 MWp in the solar part and with additional wind turbines and energy storage facilities. Energy from the Kleczew farm will flow to consumers as late as 2023.

The Kleczew Solar & Wind project was prepared by E&G of the Lewandpol Group as the investor and Ergy as the project asset manager and financial advisor to the investor.

The Lewandpol Group is one of the leading Polish private investors operating in the field of Renewable Energy Sources. Its owner is Andrzej Lewandowski - entrepreneur and sportsman, racing driver. Historically, the Group has been involved in investments in wind farms at the development stage. Since 2014, the Group has been developing its investment activities under the 'family office' formula, which focuses on mature RES investments in Poland (i.e. at around ready-to-build or later stages). In addition to the construction and upcoming expansion of Kleczew Solar & Wind, the Group also manages the 67.5 MW Łańcut Wind Farm, built in 2015, and is actively seeking further similar investments.

The Warsaw team was led by associate Karolina Majcher, partner Tomasz Rogalski and senior associate Cezary Zawiślak. The banking and finance team included Tomasz Rogalski and associates Karolina Majcher and Patryk Gelar. The legal due diligence team included partner Tomasz Rogalski, senior associate Cezary Zawiślak and lawyer Jakub Chmiel. Senior associate Krzysztof Gorzelak and associate Oskar Sula advised on the hedging aspects. The entire Norton Rose Fulbright team worked under the supervision of partner Tomasz Rogalski, who heads the firm’s Warsaw energy and infrastructure practice. 

Tomasz Rogalski commented:

“It was absolute pleasure to assist senior lenders in financing construction of such large and transformative project as Kleczew Solar & Wind. The transaction has demonstrated the depth of our project finance and energy team and expertise we bring to such complex transactions.”

Karolina Majcher added:

“We were excited to have played our role in the lenders’ and sponsor’s drive towards green energy transition in Poland which is also a key commitment for the Norton Rose Fulbright in Poland and our project finance and energy team.”

The ING Bank team included Oscar Piepers, Jacek Łukaszewicz, Robert Dąbrowski, Marcin Sawicki and Kazimierz Rajczyk, The PKO Bank Polski team included Adam Kosmala, Michał Słowik, Regina Janicka. The mBank team included Tomasz Groyecki, Jacek Zwierzchowski and Mateusz Mańkowski.

The sponsor side team at Ergy included Michał Lewczuk and Ashu Jha.