Weekly Closer: Renewables back in the lead

The renewables sector blew past the rest of the infrastructure space this week comprising six of 10 financial closes and nearly 70 percent of total deal value. 

By geography, Western Europe led the week with four financial closes, followed by North America with two and one deal each in Asia-Pacific, Latin America, Middle East/Africa and Central & Eastern Europe, according to sister website IIassets.com. 

Renewables | Total deal flow = $2,060.83 million

By far the largest deal to report financial details this week was the £1.3 billion ($1.877 billion; €1.646 billion), 402MW Dudgeon Wind Project, which closed on 13 May. The project sponsored by Statoil (35 percent), Masdar (35 percent) and Statkraft (30 percent) and under development by Dudgeon Offshore Wind Limited received financing under the UK government's Contract for Difference (CfD) scheme, with multilateral support from KfW IPEX Bank. Underwriters on the term loan supporting the project also include Abbey National Treasury Services, Bank of Tokyo-Mitsubishi UFJ, BNP Paribas, Crédit Agricole CIB (which acted as documentation bank), Mizuho, Siemens, Société Générale and Sumitomo Mitsui Banking Corp. SgurrEnergy acted as technical advisor and Aon as insurance advisor on the transaction.

The €50 million Italy Four Solar Portfolio Refinancing reached financial close on 17 May with a term loan from ING Group to developers Platina Energy Partners. Gianni Origoni Grippo Cappelli & Partners acted as legal advisor to the borrower, and Bonelli Eredie Pappalardo as legal advisor to the bank. BDO and Fichtner acted as financial advisers. The 20MW wind project has been operational since January 2011.

The European Bank for Reconstruction and Development signed a loan to finance the Banie Wind Farm Phase II Project on 13 May. With EBRD support, Alior Bank provided the 56MW Energix Renewable Energies-sponsored greenfield in Northwestern Poland with PLN90 million ($23.18 million; €20.32 million). 

The Danu II Wind Farm Portfolio Refinancing, which has been operational since 2009, closed on 11 May with a £28 million loan to Platina Energy Partners from IFM and Lloyd's Banking Group. Financial advisors included BDO, DNV GL, Ernst & Young Global Limited, and TradeRisks. Orrick-Herrington & Sutcliffe acted as legal advisors to the borrower, and both JLT Law and Norton Rose Fulbright as legal advisor to the banks. The portfolio includes two 14MW onshore wind farm projects. 

The Meridiam- and Solaire Direct- sponsored Senegal 30 MW Solar PV Plant Project, currently under development by Schneider Electric for Senegal Senergy, closed on a €43.2 million financing – with €34.5 million of that coming from debt – on 13 May. Financing includes construction of infrastructure connecting the network on behalf of the Senegalese public purchaser SENELEC, with which a 25-year power purchase agreement has been signed. Multilateral support for the project came from France's PROPARCO. Herbert Smith Freehills acted as legal advisor on the transaction. 

On 17 May, the DIF French Six Wind Projects Sale closed with Allianz Global Investors acquiring the 62MW portfolio of operational wind projects from DIF Renewable Energy Fund for an undisclosed amount. Augusta & Co and Ernst & Young Global Limited acted as financial advisors, and Watson Farley & Williams and White & Case as legal advisors. 

Transportation | Total deal flow = $962.61 million  

The Texas Department of Transportation and Blueridge Transportation Group closed on an $815 million financing, 52-year concession for the SH 288 Toll Lanes PPP Project on 12 May. TIFIA will provide a $357 million loan including PABs worth $298.6 million, and toll revenue will be used to repay the TIFIA loan. The state will invest $17.1 million and Blueridge will cover remaining costs, with the developer also paying $27.6 million to the state for concession rights. Blueridge sponsors include Infrared Capital Partners (21.6 percent), ACS Infrastructure Development (21.6 percent), Shikun & Binui (21.6 percent), Northleaf Capital Partners (18 percent), Star America Infrastructure Partners (5 percent) and Clal Sun (12.10 percent), and Pulice Construction is the project developer. 

The government of Bangladesh and the Kuwait Fund for Arab Economic Development signed a loan agreement for 44.41 million Kuwaiti dollars to cover financing of the Paira (Lebukhali) Bridge PPP Project on 4 May. The 23-year loan is the second issued to the project, which is set to enter operations in 2019.  

Energy | Total deal flow = $378 million

The International Finance Corporation and commercial lenders provided $378 million in financing to Axion Energy for the Campana Oil Refinery Expansion Project on 6 May. The IFC will provide a $78 million loan for the project, and the remaining $300 million comes through a six-year loan from a syndicate of Banco Bilbao Vizcaya Argentaria, Citigroup, Credit Agricole CIB, Grupo Santander and Industrial & Comercial Bank of China.  

Social Infrastructure | Total deal flow = Undisclosed

The Etobicoke Healthcare Partnership closed the financing of an undisclosed amount for the Etobicoke General Hospital Phase I Patient Tower PPP Project in Toronto, Ontario, on 9 May. Axium Infrastructure Canada and DIF Infrastructure IV are the project sponsors, and Walsh Construction Canada the developers. Davies Ward Phillips & Vineberg and Stikeman Elliott acted as legal advisors on the transaction and Brookfield Financial Corp as financial advisor. HDR acted as architect and ENGIE Services as facilities management. Construction debt for the project is provided by TD and SMBC, and long term debt came from Canada West and Great West Life.