Orrick Advises Financiers on the Partially Merchant, Corporate PPA Backed c. €220 Million Project Financing of Three Onshore Wind Farms in Finland Totalling 202.5 MW

2 minute read | December.19.2023

A cross-border Orrick team has advised the lenders and hedge counterparties on the approx. EUR 220,000,000 partially merchant, corporate PPA backed project financing of the Bjorkliden, Lumivaara and Storbotet onshore wind farms in Finland, with a combined nameplate capacity of 202.5 MW. The projects are being developed in a joint venture between Neoen (lead sponsor) and Prokon and builds on Neoen’s successful financing of its 404 MW Mutkalampi wind farm (also in Finland) in 2021.

Adam Smith (partner, Orrick) commented: “The transaction adds to the tally of financings of onshore wind projects in the Nordics where there is greater confidence in power price projections to support merchant exposure. We have been pleased to utilise our market leading corporate PPA experience to advise the lenders on another successful financing, which will add confidence to the blended revenue stack approach. This model (and variants of it) will become increasingly important for renewable projects as we move away from reliance on subsidies.”

The cross-border Orrick team was led by Adam Smith (London) supported by Gergana Rodriquez in Paris (diligence lead) and Oliver Sikora in London (finance), with close support provided by Taylor Brien. Craig Bruce and Rebecca Grevitt undertook diligence (construction and PPA), while Ahmed Boulahcen provided French law support, Tobias von Gostomski provided German law support and Ejemen Ofoman provided Californian law support. Klaudia Mach, John Grant, Junaid O’Balogun and others provided valuable assistance.