DEAL: Chinese Irish wind farm acquisition

Author: Lizzie Meager | Published: 24 Jan 2017

A Chinese state-owned firm has completed the country’s first investment into the Irish power market with the acquisition of a portfolio of 14 wind farms. The acquisition by China General Nuclear Power (CGN) was complicated by a highly leveraged structure where all except one of the wind farms had project financing in place already, with mezzanine debt on top.

The farms are in both Northern and the Republic of IrelandTo complete the €500 million ($536 million) deal the mezzanine debt, which was provided by a different lender to those on the project financing, was paid off in full. The project financing remains in place.
"It wasn’t necessarily straightforward, but it was the best way to do it as the mezzanine lenders were happy to exit," explained Jason Lovell, partner in Eversheds’ corporate and energy practice who advised CGN. "By dealing with...