Green Giraffe advise on EUR 4.4 bn non-recourse project financing for the Baltic Power offshore wind project in Poland
Green Giraffe Advisory advised the sponsors, Northland Power and ORLEN, on the EUR 4.4 bn non-recourse project financing consisting of EUR 3.6 bn of term loan facilities and EUR 0.8 bn of ancillary facilities for the 1.14 GW Baltic Power offshore wind project.
The debt financing for Baltic Power, which was signed on Wednesday, 19 September 2023, is being provided by 25 banks including the European Investment Bank (EIB), European Bank for Reconstruction and Development (EBRD) and the export credit agencies EDC (Export Development Canada), Export and Investment Fund of Denmark (EIFO) and Germany’s Euler Hermes as well international and local commercial banks.
The Baltic Power project is located in the Baltic Sea approximately 22 kilometers off the Polish coast and has obtained all environmental approvals and major construction permits. Once operational, which is estimated in the latter half of 2026, Baltic Power will be amongst the largest offshore wind projects globally. It is expected to provide clean energy to over 1.5 million Polish households and will play an important role in helping Poland achieve its target of up to 11 GW of offshore wind to be constructed by 2040.
Baltic Power is part of the first 5.9 GW round of offshore wind projects in Poland and obtained a grid connection and a 25-year fixed CfD offtake arrangement. The CfD offtake arrangement is Euro-pegged and includes an inflation indexation mechanism.
Green Giraffe Advisory acted in co-advisory with Pekao Investment Banking on the structuring and arrangement of the financing. The Sponsors were additionally supported by Hogan Lovells (legal).
