Exclusive financial adviser to the acquiring shareholders in the purchase of a £400m acquisition of UK windfarm portfolio

In January 2004, RWE Innogy announced the sale of its current and future UK windfarm portfolio.

Augusta & Co acted as sole financial adviser to the equity investors in the negotiation and structuring of this wind renewable energy financing, as well as the £300m debt backing the acquisition buildout of the portfolio. The successful acquisition was the result of the equity syndicate bidding and winning a contested auction for the assets.

The assets sold comprised the largest windfarm portfolio in the UK with windfarms throughout mainland Britain, and will include the recently built North Hoyle offshore windfarm. This is the first time that offshore wind generation is financed on a non-recourse basis.

Key features of the structure included committed debt and equity capital to support the acquisition of the existing windfarm portfolio and pipeline; a three-year commitment period; a highly efficient corporate structure; and a put feature that enables RWE Innogy to sell future windfarm development to the Zephyr vehicle.

In recognition of its innovative nature, the transaction was the beneficiary of three industry awards: Project Finance International’s Power Deal of the Year, Euromoney’s European Renewables Deal, and the IFR Deal of the Year award.

The transaction closed in January 2004.

Mortimer Menzel MMenzel@augustaco.com
James Knight JKnight@augustaco.com