DEUTSCHE BANK PAN-EU WIND POWER PACKAGE RS

Promoter – Financial Intermediary

DEUTSCHE BANK AG

Location

• Switzerland
• Germany
• France
• EU Countries

Description

The project consists of an underlying operation with Deutsche Bank under the PAN-EU WIND POWER PACKAGE RISK SHARING Lending Envelope. The operation, an unfunded partial delegation linked risk sharing (LRS) transaction, will enable the intermediary to provide counter-guarantees on advance payments and performance bonds associated with supply contracts of EU Original Equipment Manufacturers (OEMs) of wind energy equipment and the related wind value chain components (e.g. turbines, grid connection's infrastructure, cables, transformer stations, sub-stations and possibly sub-contractors).

Additionality and Impact

The operation will contribute to the developing of the energy sector.

The ambitious policy decarbonisation targets set for 2030 require significant investment in renewable energy production capacity, notably in onshore and offshore wind energy infrastructure in Europe. This in turn requires a scale up of the supply chain manufacturing industry and ability to deliver components, services, and materials in a timely manner. It also requires an increased access to advance payment and performance guarantee lines for the OEMs, in a context of financial pressure (growing order books and challenges from rising inflation and interest rates) and with commercial banks reaching their exposure concentration limits vis-a-vis OEMs. The current situation in the guarantee market for wind projects is exacerbated by the relatively limited number of EU commercial banks providing such demanded guarantees in Europe.

The operation, by specifically addressing the increasing bottleneck associated with the provision of guarantees to OEMs, will enable the activation of under-utilised already installed strategic Net-Zero technology manufacturing capacity of wind energy OEM suppliers in Europe, which would otherwise go idle and potentially be lost in part. This enabling effect will help support the proper functioning and access to finance of the entire wind-energy supply chain and will, in turn, contribute to deploy additional renewable energy generation capacity that will eventually be installed in Europe.

Objectives

The aim is to finance new investments in the wind energy sector across the EU. The PAN-EU WIND POWER PACKAGE RISK SHARING Lending Envelope is a dedicated Guarantee Programme to allow banks to provide additional guarantees related to supply contracts of wind energy equipment manufacturers in the EU, which is expected to mobilise about €1bn of advance payment and performance guarantees related to EU based wind power equipment manufacturers' production activities for new wind energy infrastructure in the EU. The sub-operations will be limited to manufacturing companies producing and/or assembling in the EU and supplying wind farms and related value chain components to be used in wind energy projects in the EU.

Sector(s)

• Credit lines - Credit lines

Proposed EIB finance (Approximate amount)

EUR 500 million

Total cost (Approximate amount)

EUR 8000 million

Environmental aspects

Sub-projects need to comply with the EU acquis, in particular in the field of environment, the EIB will require the intermediary institution to take all the requisite measures to ensure that the environment procedures carried out by the Final Recipients under the New Portfolio will comply with the relevant EU environment, social and procurement legislation and the applicable national legislation, provided that it is in conformity with EU rules.

Procurement

Sub-projects need to comply with the EU acquis and the EIB will require the intermediary institution to take all the requisite measures to ensure that procurement procedures carried out by the Final Recipients under the new portfolio will comply with the relevant EU procurement legislation and the applicable national legislation, provided that it is in conformity with EU rules.

Status

Signed - 31/07/2024