By Nigina Mirbabaeva
Highlights
- EBRD and Eiffel Investment Group partner to support development of renewable energy in Bank's regions
- First 45 million joint loan to support construction and operation of 16 solar power plants in Poland
- Project aims to unlock more financing for renewable energy and support Poland's green transition targets
The European Bank for Reconstruction and Development (EBRD) and French asset manager Eiffel Investment Group (Eiffel) are supporting the development of solar energy generation in Poland by extending a joint loan of 45 million to PL-SUN Sp.z.o.o.
PL-SUN Sp.z.o.o is a holding company incorporated in Poland for the purpose of constructing and operating a portfolio of solar plants. It is owned and sponsored by a Lithuanian closed-end investment company UAB Atsinaujinančios Energetikos Investicijos (AEI), focused on renewable energy investments and managed by Lords LB Asset Management. AEI currently operates a portfolio of around 250 MW in Poland and Lithuania.
The construction bridge financing loan - which will be made up of equal contributions of 22.5 million from each institution - will finance the construction of a portfolio of 16 solar photovoltaic power plants with a total installed capacity of 114.7 MW across Poland. The plants are expected to generate a total of 122.5 GWh of electricity and lead to savings of 88,000 tonnes of carbon dioxide emissions annually.
The loan is the EBRD's first construction bridge loan to date and demonstrates the Bank's support for innovative financing instruments, both in the Polish market and beyond. Construction bridge loans provide short-term capital for the construction of renewable energy assets, helping to address the financial constraints developers face when financing from institutional investors is limited or unavailable.
This is the first project co-financed under a new partnership between Eiffel and the EBRD, which aims to accelerate the green transition across the Bank's regions. The two institutions signed a memorandum of understanding in December 2023 outlining their cooperation in exploring co-investment bridge financing to accelerate the deployment of renewable energy sources across central and eastern Europe.
Andrius Stonkus, Partner and CIO at Lords LB, said: "This transaction is very significant for the development of Lords LB Asset Management portfolio of solar projects in Poland. I am glad that it not only contributes to the development of our renewable energy infrastructure in Poland, but also meets the country's green energy strategic goals."
Elisabetta Falcetti, EBRD Regional Head for Poland and the Baltic states, added: "Unlocking additional financial resources for the renewables sector in Poland is crucial to meet the country's ambitious green transition targets. I am particularly pleased that this first project under the EBRD and Eiffel partnership will - thanks to the efforts of Lords - increase the renewable energy generation capacity in Poland and support the country's shift to a greener, more sustainable energy model."
"Poland is a key market for Europe's energy transition and sovereignty. Its growing commitment to energy transition and its potential in green infrastructure fit perfectly with our long-term investment strategy and expertise," said Fabrice Dumonteil, President of Eiffel Investment Group. "We believe our presence in Warsaw, along with our cooperation with EBRD, will enable us to further accelerate our investment pace in the region. The 45 million joint bridge loan to the 16 solar photovoltaic projects portfolio sponsored by Lords LB Asset Management is an integral part of this strategy".
Eiffel is a Paris-based asset manager that specialises in energy-transition financing, with a focus on providing secured bridge funding to renewable projects, including solar and wind. Eiffel has invested in more than 180 bridge financing transactions since 2017.
The EBRD is among the leading institutional investors in Poland. Since the start of its operations in the country in 1991, the Bank has invested more than 14 billion in 519 projects. Supporting Poland's transition to a low-carbon economy and further developing its capital markets and the role of its private sector are two key priorities of the EBRD's work in the country.
