NTR has signed a power purchase agreement (PPA), with a European utility as part of its financing of 94 MW of wind projects in Sweden and Finland. The utility will offtake 70% of the power generated over the next 15 years by Trattberget, a 69MW wind project in the portfolio. The power produced by the remaining two projects will continue to avail of existing revenue arrangements. An existing offtake arrangement is in place with an industrial pulp mill for the 10MW Skutskär project in Sweden and the 15 MW Svalskulla wind project avails of the Finnish feed-in-tariff system.
Nord/LB was mandated by NTR to provide €37 million of debt facilities to the portfolio of three projects, which became operational between 2009 and 2014.
Said Manus O’Donnell, Chief Investment Officer of NTR; “This combined portfolio debt and PPA transaction secures attractive and reliable long-term income for our investors from a portfolio of quality wind assets. We are delighted to work with Nord/LB on an important milestone for NTR Renewable Energy Income Fund II.”
Gerard Pieters, Head of Origination Energy Europe Nord/LB Structured Finance, commented; “We are thrilled to have worked with NTR to provide financing for this cross-border and PPA driven portfolio in the Nordics. The innovative financing combines our long history and global top position in renewables, particularly as market leader in PPA driven projects. This marks our latest successful close in a range of PPA driven projects in Europe over the past 12 months, where close co-operation between sponsors, banks, and offtakers is fundamental for long term success.”
DLA Piper and Pexapark provided legal and commercial advice respectively to NTR.
This transaction follows a recent announcement by NTR where a 19 MW Irish wind project has been added to a portfolio of just over 290MW of income generating wind and solar projects across five western Europe countries to its NTR Renewable Energy Income Fund II. This brings assets under management by NTR on behalf of its two funds to 515 MWs of wind and solar projects located throughout Ireland, France, Sweden, Finland and the United Kingdom.