A&O acts for EIG on €140m financing to Opdenergy

Allen & Overy has advised US-based investor EIG on a corporate financing granted to Opdenergy for up to €140 million

Opdenergy has closed an agreement with EIG to refinance its outstanding euro- and U.S. dollar-denominated senior notes due 2024 with a new senior note facility in a principal amount of up to €140 million. As a result, an initial drawdown of €114.5 million in principal amount was completed through the issuance of new notes at 98% of its par value. A portion of the net proceeds of the issuance of the new notes has been used to redeem and cancel the outstanding old notes. The financing will allow the company to continue developing clean energy projects.

EIG is a leading institutional investor in the global energy sector with $21.9 billion under management as of December 31, 2020. EIG specializes in private investments in energy and energy-related infrastructure on a global basis. EIG is headquartered in Washington, D.C., with offices in Houston, London, Sydney, Rio de Janeiro, Hong Kong and Seoul.

Opdenergy will also apply a portion of the net proceeds from the issuance of the new notes to fund the buy-back from the European infrastructure fund Marguerite II of its 80% stake in three solar photovoltaic plants in Spain. With this transaction, Opdenergy now owns 100% of these solar PV plants and has increased its aggregate attributable installed capacity in Spain to 261 MW and globally to 468 MW vs. its aggregate gross installed capacity of 584 MW.

Luis Cid, Opdenergy’s CEO, stated: “This is a relevant milestone for Opdenergy in its path to become a large-scale IPP in Europe and the Americas. We are very proud to have the confidence of major financing players in the sector such as EIG which we believe evidence the reliability of our business model. Agreements like this will allow us to continue developing clean energy projects in better conditions while contributing to the promotion of sustainability and the fight against climate change.”

Simon Hayden, managing director at EIG, stated: “EIG is delighted to renew its successful relationship with Opdenergy and further support the company in its next stage of growth.”

Allen & Overy advised EIG with a team comprising B&F partners Jimena Urretavizcaya (pictured left) and Charles Poole-Warren (pictured right), senior associate Nuria Castro, and associates Marta Peláez, Mark Klag and Katie Steval.