June 24, 2014

The transition to low-carbon growth: Renewable electricity for some 785,000 households from Europe’s second-largest wind farm

Deutsche Bank has jointly led a EUR 2.8bn deal to finance Europe’s second-largest wind farm.

The Bank performed key financing, hedging and syndication roles in the recent financing of the 600 megawatt (MW) “Gemini” offshore wind farm to be constructed in Dutch territorial waters of the North Sea. Several Deutsche Bank clients from various countries will act as contractors and suppliers, with significant job creation over the three-year construction period.

A significant contribution to Europe’s sustainability goals

When complete, the 600 MW offshore facility will supply some 785,000 households with renewable electricity and reduce Dutch carbon dioxide emissions by 1.25m tons per year. In this way, the deal makes a significant contribution to the country’s and Europe’s sustainability goals.

Dominik Thumfart, Capital Markets & Treasury Solutions, said: “Gemini is the largest sustainable energy project in Europe with project-based financing. Considering the size and complexity of this project and the involvement of more than 20 equity and debt financiers, execution of the project financing in six months is a significant achievement.”

A strong reputation for project finance expertise in the infrastructure and energy sector

Deutsche Bank has established a strong reputation for its project finance expertise in the infrastructure and energy sector. Michael Volkermann, Structured Credit Asset Finance & Leasing Infrastructure & Energy, said: “Notwithstanding continued technological and logistical innovation and complexity, offshore wind is a quickly growing sub-sector of the power generation market in Europe.”

Bernd Fislage, Head of Asset Finance & Leasing, added: “Deutsche Bank clients involved in the deal have acknowledged our ability to underwrite significant amounts of risk capital and in being instrumental to the rapid resolution of complex financing and risk management issues, thus facilitating a timely start of construction during the crucial summer period. Project Gemini puts Deutsche Bank in a strong position to benefit from the future growth of offshore wind power in Europe and to add value for the increasing number of clients − industrials, power companies and financial sponsors − active in the sector.”

Financing a transforming energy landscape

Our business division Corporate Banking & Securities (CB&S) handles transactions involving project finance in the renewable energy sector. The division provides advisory and financing services to companies and public bodies – such as sovereign countries and supranational organizations – in conjunction with mergers and acquisitions as well as issuances of bonds or shares.

As part of our corporate finance business, we support companies in the renewable energy sector with extensive advisory and financial services. Our project financing team has been supporting similar activities since 1999, structuring financing solutions and providing capital for each phase of a project’s life cycle. The technology focus is on onshore and offshore wind, solar PV, solar thermal and biomass transactions.

Economic growth can be boosted by investments in infrastructure. Several countries are therefore examining how to increase investments in green infrastructure. In 2013, Deutsche Bank allocated more than US $1.2 billion to clients’ renewable energy projects. This makes us one of the top three private-sector project financiers in clean energy globally. We advised and provided financing to facilitate the construction of solar, wind and run-of-river hydro power as well as waste-to-energy projects with a total capacity of more than 1,185 MW, worth more than US $3.6 billion.

windmills

“Project Gemini puts Deutsche Bank in a strong position to benefit from the future growth of offshore wind power in Europe and to add value for the in­crea­sing number of clients − in­dus­tri­als, power companies and fi­nan­cial sponsors − active in the sector.”

Bernd Fislage Head of Asset Finance & Leasing

Renewable electricity

Some 785,000 households

will be supplied by Europe’s second-largest wind farm

Economic growth boosted by investments in infrastructure

In 2013, Deutsche Bank advised and provided financing to facilitate the construction of solar, wind and run-of-river hydro power as well as waste-to-energy projects with a total capacity of more than 1,185 MW, worth more than US $3.6 billion

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