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Dentons advises PKO Bank Polski on the financing of Re Alloys’ first wind power project based on a PPA
February 21, 2023
Dentons has advised PKO Bank Polski on the financing granted to Wind Farm Łada, a company controlled by Re Alloys, and indirectly by Luma Holding, for the construction of the Dzwola onshore wind power project with a capacity of 35 MW. The financing includes an investment loan of €89 million and a VAT working capital loan of PLN 32.3 million.
The Dzwola wind farm will be the first wind farm to be operated by Re Alloys, Europe’s leading producer of ferrosilicon and other silicon-based alloys. The transaction is part of a broader program which aims to ensure that Re Alloys’ energy needs are fully covered from its own renewable sources. The wind farm, located in the municipality of Dzwola in south-eastern Poland, will be commissioned in the fourth quarter of 2024.
Dentons provided comprehensive support to PKO Bank Polski in preparing, negotiating and executing the senior finance documents and a structure-specific intercreditor agreement (as the financing structure incorporated a parallel mezzanine financing), in preparing a due diligence report on the project, and in advising on the PPA structure and bankability.
“We are honored to have had the opportunity to support PKO Bank Polski on this innovative yet challenging project. We are pleased that thanks to our extensive experience in project financing, we were able to advise on an interesting transaction structure, involving senior and mezzanine debt financing and revenues covered by an EUR power purchase agreement. We hope that the success of this project will contribute to the implementation of Re Alloys' ambitious plans to achieve energy self-sufficiency through renewable energy sources,” said Tomasz Zwoliński, Partner in the Banking and Finance team, who supervised the transaction.
“In many ways, it was a very interesting if difficult transaction. This, among other factors, was due to the need for re-permitting – a process which, combined with complicated technical aspects, was a real test for us lawyers, as was the complex ownership structure of the land. We like challenges and we are always happy to assist in implementing investments in wind energy projects in Poland,” said Partner Agnieszka Kulińska, who leads the Renewable Energy Sources team within Dentons’ Energy group in Poland.
Supervised by Tomasz Zwoliński, Paweł Długoborski (counsel) led the project, with assistance from Mateusz Ciechomski (associate) and Weronika Łakoma (associate). Agnieszka Kulińska led the following lawyers from the Energy and Natural Resources team who advised on the project-related aspects of the transaction: Zbigniew Stasiak (managing counsel), Lena Boczkaja (senior associate), Sandra Sekuła-Barańska (senior associate) and Julia Kryńska (associate).
PKO Bank Polski is Poland’s largest banking institution with over 100 years of history. Supporting RES and ESG transformation projects is one of the pillars of PKO Bank Polski’s strategic commitments. The bank is a joint-stock company listed on the Warsaw Stock Exchange since 2004.
Re Alloys is part of the Luma Holding Group, which brings together companies in the metals, technology and renewable energy sectors in its portfolio. Luma Holding invests in sustainable companies in Poland, Central and Eastern Europe, and Africa with global ambitions, building long-term value on a solid ESG foundation.
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