EBRD and Eiffel Investment Group Collaborate to Boost Solar Energy in Poland with €45 Million Joint Loan

EBRD and Eiffel Investment Group Collaborate to Boost Solar Energy in Poland with €45 Million Joint Loan

(IN BRIEF) The European Bank for Reconstruction and Development (EBRD) and Eiffel Investment Group are teaming up to advance solar energy development in Poland through a €45 million joint loan to PL-SUN Sp.z.o.o. This funding will support the construction of 16 solar photovoltaic power plants, contributing to Poland’s green transition targets by generating renewable energy and reducing carbon emissions. It marks the EBRD’s first construction bridge loan, showcasing its commitment to innovative financing in the renewable energy sector. The partnership aims to accelerate the deployment of renewable energy across central and eastern Europe, providing a significant boost to Lords LB Asset Management’s solar project portfolio in Poland and aligning with the country’s strategic goals for green energy.

(PRESS RELEASE) LONDON, 2-Mar-2024— /EuropaWire/ — The European Bank for Reconstruction and Development (EBRD) and French asset manager Eiffel Investment Group (Eiffel) are supporting the development of solar energy generation in Poland by extending a joint loan of €45 million to PL-SUN Sp.z.o.o.

PL-SUN Sp.z.o.o is a holding company incorporated in Poland for the purpose of constructing and operating a portfolio of solar plants. It is owned and sponsored by a Lithuanian closed-end investment company UAB Atsinaujinančios Energetikos Investicijos (AEI), focused on renewable energy investments and managed by Lords LB Asset Management. AEI currently operates a portfolio of around 250 MW in Poland and Lithuania.

The construction bridge financing loan – which will be made up of equal contributions of €22.5 million from each institution – will finance the construction of a portfolio of 16 solar photovoltaic power plants with a total installed capacity of 114.7 MW across Poland. The plants are expected to generate a total of 122.5 GWh of electricity and lead to savings of 88,000 tonnes of carbon dioxide emissions annually.

The loan is the EBRD’s first construction bridge loan to date and demonstrates the Bank’s support for innovative financing instruments, both in the Polish market and beyond. Construction bridge loans provide short-term capital for the construction of renewable energy assets, helping to address the financial constraints developers face when financing from institutional investors is limited or unavailable.

This is the first project co-financed under a new partnership between Eiffel and the EBRD, which aims to accelerate the green transition across the Bank’s regions. The two institutions signed a memorandum of understanding in December 2023 outlining their cooperation in exploring co-investment bridge financing to accelerate the deployment of renewable energy sources across central and eastern Europe.

Andrius Stonkus, Partner and CIO at Lords LB, said: “This transaction is very significant for the development of Lords LB Asset Management portfolio of solar projects in Poland. I am glad that it not only contributes to the development of our renewable energy infrastructure in Poland, but also meets the country’s green energy strategic goals.”

Elisabetta Falcetti, EBRD Regional Head for Poland and the Baltic states, added: “Unlocking additional financial resources for the renewables sector in Poland is crucial to meet the country’s ambitious green transition targets. I am particularly pleased that this first project under the EBRD and Eiffel partnership will thanks to the efforts of Lords – increase the renewable energy generation capacity in Poland and support the country’s shift to a greener, more sustainable energy model.”

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SOURCE: EBRD