European Energy bags EUR-150m portfolio facility for new renewables

Danish renewables developer European Energy A/S said on Wednesday that it has secured a EUR-150-million (USD 163.5m) green portfolio financing facility with Scandinavian banks SEB and DNB to expedite the deployment of renewable energy projects across ten countries in Northern Europe.

The facility will allow simultaneous funding for multiple projects, even if they have not been specifically named yet. This way, European Energy will avoid the usual project-by-project process that accompanies traditional facilities, making it easier to jump-start the projects, the company argued.

European Energy also highlighted the revolving nature of the facility, which will ensure the funds are reused as project loans are repaid. The structure of the financial arrangement spreads credit risk across various projects, enhancing appeal for lenders.

The initial tenure is five years, extendable to seven, with an accordion feature enabling a potential increase of the facility to EUR 250 million, involving both existing and new lenders.

European Energy expects to start allocating funds from this facility in early 2024.

(EUR 1.0 = USD 1.09)

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