Hogan Lovells Advised Consortium of Banks to Power Up Growth with €180 Million Debt Bridge Financing
Hogan Lovells Advised Consortium of Banks to Power Up Growth with €180 Million Debt Bridge Financing
Hogan Lovells led by partner Carla Luh, has advised a consortium of banks on a €180 million non-recourse revolving debt bridge financing facility to support Encavis AG's photovoltaic projects.
Encavis, a Hamburg-based wind and solar park operator, has secured a credit line from Dutch financial institutions ABN AMRO and Rabobank to support its solar photovoltaic projects in core markets Denmark, Germany, Italy, and Spain.
Encavis Bridge Financing GmbH, a fully owned subsidiary of Encavis AG, can use the non-recourse debt bridge financing facility to finance ready-to-build (RTB) solar projects acquired from Encavis' Strategic Development Partners (SDPs) and operating projects in Denmark, Germany, Italy, and Spain. The facility also allows Encavis to bundle smaller projects into larger portfolios to improve structuring and Power Purchase Agreements (PPA) negotiations, and to secure favourable terms for long-term project financing, making a significant contribution to the realisation of its Accelerated Growth Strategy 2027.
The debt bridge financing facility includes a €150 million revolving debt bridge facility, a €20 million letter of credit facility, and a €10 million VAT facility, which can be used in EUR and DKK. The facility has a three-year tenor, which can be extended twice by one year each for a total tenor of up to five years. Additionally, the facility includes an "accordion increase" mechanism that allows Encavis to further increase the financing amount to up to €310 million with existing and new lenders.
