14 December – LAWFUEL – The Law News Network – Linklaters advised the lead arrangers and lenders BNP Paribas, Calyon, EBRD and ING Wholesale Banking on the greenfield project financing of AES Maritza East 1 which closed on 7 December. The project involves the development of a 2x300MW lignite-fired power plant fitted with FGD filters.
Linklaters partner Clive Ransome, who led the team, said:
“This project is notable in that it represents the largest ever foreign investment in Bulgaria and the largest greenfield investment in Central and Eastern Europe, with the creation of over 2,000 new jobs. Of the EUR 1.1 billion total project cost, EUR 850 million is to be funded through a multi-sourced debt financing with the remainder through equity.”
The financing comprises an EBRD tranche, separate MIGA, COFACE and HERMES covered tranches, a commercial uncovered tranche plus a revolving working capital facility and a debt service reserve letter of credit facility. The funding is supported by a long-term power purchase agreement with the Bulgarian national power company (NEK) and lignite supply agreement with the largest local mine entity.
The Linklaters team also included Richard Nelson, Dimitri Papaefstratiou, Jenny Draper, Craig Rogers, Davinder Mann from the London office; Anthony Morton and Sally Lewalter from Frankfurt and Bertrand Andriani and Markus Renfert from Paris.