RPC Raises EUR 200 Million for Three Finnish Wind Farms Totaling 171 MW

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UK-based Renewable Power Capital (RPC) has announced the closing of a refinancing package of almost EUR 200 million covering Finaland’s three onshore wind energy farms in Rustari, Puutikankangas, and Merkkikallio.

The wind farms are all operational and have a combined installed capacity of 171 MW. In March, RPC announced that it had taken over the operation of the Rustari, Puutikankangas, and Merkkikallio wind farms from OX2, marking its shift from investor to operator.

As per RPC, this new long-term package replaces an existing short-term construction loan and ensures that there is stable financing in place for the projects’ lifetimes.

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RPC said that it secured this refinancing at a time when renewables projects are being impacted by high inflation and supply-chain pressures, which is testament to its reputation as a secure, long-term investor.

Kommunalkredit Austria acted as Mandated Lead Arranger & Structuring Bank, with AP Pension Livsforsikringsaktieselskab acting as Lender, and Euler Hermes as the German Export Credit Agency to guarantee part of the debt, said RPC.

Sylvain Delion, Head of Structured Finance, PRC, said, “That this agreement has been closed at a time of such uncertainty in financial markets is significant not only because it testifies to the skills and expertise of RPC’s team, but also as it provides much-needed certainty for projects by securing a long- term, stable financing structure.”

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Romane Guitard, MD at Augusta & Co, stated, after a significant market testing exercise, they brought together a novel combination of three distinct pools of capital, including ECA, commercial banks, and institutional debt funds to deliver on RPC’s return and flexibility requirements in a challenging financing environment. “This transaction again demonstrates our approach to develop and execute bespoke structuring solutions in ways that best serve our clients,” he said.

Rasmus Cederholm, CIO at AP Pension, said his firm provided EUR 50 million loan of RPC to ensure that green energy is being brought out to a large number of people.

The wind power market of Finland is growing in leaps and bounds. As per the Finnish Wind Energy Association (FWPA), the wind power capacity of Finland witnessed a 75% surge in 2022. Of this, nearly half of it was owned by Finland domestically.

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It is anticipated that the capacity of wind power in Finland will be accelerated by close to 1,000 MW every year in the next few years.