Green Giraffe and Pekao Investment Banking advise on EUR 4.4 bn non-recourse financing of the Baltic Power offshore wind project
Press release, 19 September 2023
Global energy transition financial advisor Green Giraffe Advisory has 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, 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), EIFO (Export and Investment Fund of Denmark) 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).
Jakob Bergvelt, who led the deal team, said: “Reaching financial close on Baltic Power is a transformative moment for the offshore wind industry in Poland, and a major milestone in the drive to decarbonise Poland’s electricity generation. Securing the finance for a project of this scale is a huge credit to the track record and expertise of the sponsors, Northland Power and Orlen, as well as the Baltic Power project team, and underpins the attractiveness of Polish renewable assets. Set to be one of the largest offshore wind farms in the world, the international lending community has again demonstrated its strong appetite for offshore wind, and for good renewable energy projects. I am proud to have been part of the team – it has been a rewarding experience.”
Udo Schneider, Managing Director at Green Giraffe Advisory said: “Green Giraffe Advisory has supported the development of the Polish offshore wind industry since 2017, and offshore wind remains at the core of our mission. Over the years our team has raised more than EUR 28 billion of non-recourse debt for offshore wind projects and continually pushed the boundaries of the industry. The financing of Baltic Power offshore wind represents another pioneering transaction. Our team successfully navigated a range of challenges associated with financing such complex first of its kind project in new markets deploying new technology from a truly global lending group.”
About Green Giraffe
Launched in 2010 and with offices in Boston, Cape Town, Hamburg, London, Madrid, Paris, Singapore, Sydney and Utrecht, Green Giraffe offers bespoke financial advice, market intelligence and development services in all renewable and energy transition technologies.
The full scope of Green Giraffe services, including development equity, M&A, debt advisory, tender PPA and strategic support, will be offered across all renewable and energy transition technologies, including solar, onshore wind, offshore wind, storage and hydrogen.