ENERCON Supports Wind Farm Operators with Project Financing

• Financing instrument unique in the industry reduces equity requirements and preserves liquidity

• Operators remain owners and therefore retain full control over their projects

• Can also be used for existing wind farms to release tied-up equity capital ahead of schedule

• Another building block in ENERCON’s solution portfolio to enhance the value of wind energy

With a new project financing solution, ENERCON is supporting operators in realising their wind farm projects. Together with strong financing partners, the company has launched the ‘ENERCON Finance Solutions Fund’. The fund provides operators planning new projects with ENERCON wind turbines, as well as those seeking to refinance existing wind farms and release equity capital, with loans known as mezzanine loans. This financing instrument enables operators to reduce their equity contribution, improve liquidity, and retain full control of their projects while maximising financial benefits throughout the entire project lifecycle. Mezzanine loans of up to EUR 10 million per project are available through the fund.

For many operators, securing the capital required to implement wind energy projects remains a significant challenge. Although the majority of project financing is typically provided through bank loans, banks generally require a certain level of equity capital as a condition for lending. When sufficient equity is unavailable, operators must seek additional capital from external financing sources. In such cases, external investors often receive ownership stakes in the operating company or certain decision-making rights regarding the project’s strategic direction.

Mezzanine loans are a form of long-term debt capital provided by investors or financiers without granting them ownership interests or voting rights in the financed project. They bridge the financing gap between traditional bank loans and equity capital, enabling a more flexible capital structure. Mezzanine capital is typically subordinated to senior bank debt, thereby expanding financing options and reducing the amount of equity required. This allows project developers and operators to undertake additional projects or allocate capital more efficiently to support growth.

With this offering, ENERCON is responding to the growing demand for equity capital in wind farm financing. ‘The demand is enormous’, says Dr Michael Jaxy, CFO of ENERCON. ‘With the ENERCON Finance Solutions Fund, we are strategically expanding our portfolio with a flexible financing component and helping our customers implement projects more efficiently, optimise capital structures, preserve liquidity, and retain ownership of their wind farms. This financing solution is unique in the market. It provides our customers with another opportunity to create value from their projects while making an important contribution to accelerating the expansion of wind energy.’

The fund is part of the ENERCON Renewable Energy Fund S.A., SICAV-RAIF (umbrella fund). As anchor investor, MEAG, the asset manager of the Munich Re Group, supports the fund with long-term capital and extensive experience in infrastructure and energy project financing. Project-specific investment assessments and portfolio management are carried out independently by Mountstreet as delegated portfolio manager. Universal Investment Luxembourg, acting as a regulated Alternative Investment Fund Manager (AIFM), assumes the fund’s regulatory responsibility. The investments are made through the issuance vehicle Debt Marketplace, which is managed by BKN Capital S.A.

‘Together with ENERCON, we have developed a tailored debt financing solution for the German-speaking wind energy market’, says Antonia Jobke, Managing Director of MEAG. ‘The combination of long-standing industry expertise and institutional financing know-how enables the efficient financing of new and existing wind energy projects while supporting the further expansion of renewable energy. At the same time, we can offer our investors exclusive access to long-term, high-value infrastructure investments as part of the energy transition.’

ENERCON views the new financing instrument as a further enhancement of its integrated solutions offering for the connected renewable energy ecosystem. ‘With the fund, we are expanding our solution portfolio with offerings that cover the entire value chain, from turbine supply and service solutions to tailor-made financing solutions’, says Dr Michael Jaxy, CFO of ENERCON. ‘This ensures that customers receive reliable support all the way through the project development and financing process.’

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