Encavis Secures €61 Million Project Financing for 114 MW Borrentin Solar Park, Supporting Germany’s Energy Transition

Encavis Secures €61 Million Project Financing for 114 MW Borrentin Solar Park, Supporting Germany’s Energy Transition

(IN BRIEF) Encavis AG has secured €61 million in project financing for its 114 MW Borrentin solar park in Germany. The financing was provided by Bayerische Landesbank and will help complete the solar park by the end of September 2024. The plant is expected to produce 121 GWh of electricity annually, supporting Germany’s energy transition. A long-term Power Purchase Agreement (PPA) will cover 74% of the plant’s electricity output. This project is part of Encavis’ broader plan to reach 7 GW of installed renewable capacity by 2027.

(PRESS RELEASE) FRANKFURT, 10-Sep-2024 — /EuropaWire/ — Encavis AG, a leading European renewable energy provider, has successfully closed a project financing agreement valued at €61 million for its large-scale solar park in Borrentin, Germany. The financing, arranged by Encavis’ in-house Project Finance team, was provided by Bayerische Landesbank, a long-standing financial partner of Encavis. This significant milestone aligns with Encavis’ goal of expanding its renewable energy portfolio and contributing to Germany’s ambitious energy transition targets.

The Borrentin solar park, located in Mecklenburg-Western Pomerania, is set to become the largest solar facility owned by Encavis in Germany, with a capacity of 114 MW. Expected to be fully operational by the end of September 2024, the plant will generate approximately 121 GWh of electricity annually, providing clean energy to the grid. This output is enough to power tens of thousands of households while making a substantial contribution to reducing carbon emissions.

Nearly 74% of the solar park’s electricity production is covered under a long-term Power Purchase Agreement (PPA) with a corporate offtaker, ensuring stable and predictable revenue for Encavis over the next decade. This agreement reflects the increasing demand for renewable energy from corporate buyers looking to secure green energy sources for their operations.

The €61 million financing package includes €46.8 million in term loan facilities, €2.75 million in VAT financing, and €11.1 million in letter of credit facilities. This structure ensures flexibility and scalability, supporting the completion and future operation of the Borrentin project.

Dr. Christoph Husmann, Spokesman of the Management Board and CFO of Encavis AG, expressed satisfaction with the successful financing, stating: “We are pleased to have placed this project financing with one of our strategic bank partners after a thorough selection process. With our target of achieving 7 GW of installed capacity by the end of 2027, this project highlights the importance of our experienced in-house project financing team and our strong partnerships with financial institutions.”

This financing deal reinforces Encavis’ growth strategy as it works toward expanding its renewable energy capacity, with many more projects in the pipeline. The Borrentin solar park represents another step toward Encavis’ goal of playing a pivotal role in the transition to a sustainable energy future across Europe.

About ENCAVIS:
The Encavis AG (Prime Standard; ISIN: DE0006095003; ticker symbol: ECV) is a producer of electricity from Renewable Energies listed on the MDAX of Deutsche Börse AG. As one of the leading independent power producers (IPP), ENCAVIS acquires and operates (onshore) wind farms and solar parks in twelve European countries. The plants for sustainable energy production generate stable yields through guaranteed feed-in tariffs (FIT) or long-term power purchase agreements (PPA). The Encavis Group’s total generation capacity currently adds up to around 3.6 gigawatts (GW), of which around 2.2 GW belong to the Encavis AG, which corresponds to a total saving of around 0.8 million tonnes of CO2 per year stand-alone for the Encavis AG. In addition, the Group currently has more than 1.2 GW of capacity under construction, of which around 900 MW are own assets.

Within the Encavis Group, Encavis Asset Management AG offers fund services to institutional investors. Another Group member company is Stern Energy S.p.A., based in Parma, Italy, a specialised provider of technical services for the installation, operation, maintenance, revamping and repowering of photovoltaic systems across Europe.

ENCAVIS is a signatory of the UN Global Compact as well as of the UN PRI network. Encavis AG’s environmental, social and governance performance has been awarded by two of the world’s leading ESG rating agencies. MSCI ESG Ratings awarded the corporate ESG performance with their “AA” level and ISS ESG with their “Prime” label (A-), the Carbon Disclosure Project (CDP) with its Climate Score “B” and Sustainalytics with its “low risk” ESG risk rating.

Additional information can be found at www.encavis.com

Media Contact:

Dr. Oliver Prüfer
Press Officer & Manager Public Relations
Tel.: + 49 (0)40 37 85 62 133
E-Mail: oliver.pruefer@encavis.com
http://www.encavis.com

SOURCE: ENCAVIS AG