BayernLB finance acquisition of wind farm in Northern Ireland

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Northern Ireland has some of the best wind resource in the UK, and historically benefitted from a generous ROC regime.

In 2018, we advised Bayerische Landesbank (“BayernLB”) on its acquisition financing for 7 onshore wind turbines in Northern Ireland. BayernLB, a bank owned by the federal state of Bavaria and the Bavarian savings banks, is a leading financial services provider focused on serving its customers, including SMEs and large corporates, savings banks and public authorities as well as customers in the real estate industry. BayernLB is an experienced and committed lender to the renewable energy sector, having for many years provided financing solutions to renewable energy companies focused on solar, wind, hydro, solar thermal and geothermal technologies, all across Europe and North America. One of BayernLB’s special areas of expertise within the renewable energy sector is the UK market where the bank has financed projects with a total capacity of over 2 gigawatts.

The purchaser (a major UK-based renewable energy fund) acquired the assets from the original Northern Irish developer. The transaction was significant, as it reinforced the fact that good quality assets (even if small in size) if professionally managed and constructed, can be aggregated into portfolios for improved economies of scale, thereby attracting interest from significant financial investors and lenders.

We carried out legal due diligence into the assets, liaised with the technical and insurance advisers and advised the bank (together with local counsel, who we coordinated) on the entire spectrum of finance-related documentation across four jurisdictions.

This instruction was our first for a “high street” bank and a significant achievement for a firm of our size, in a market place where usually only the largest firms are appointed by traditional lenders.

Since financial close, we have continued working with BayernLB, ensuring that the project reflects the investment standing that is required, and assisting with the ongoing maintenance and insurance arrangements.

BayernLB commented:

“We highly appreciated Lux Nova’s efficient way of working as well as their customer-oriented focus and are looking forward to concluding further transactions with them as Legal Advisor in the future.”