Augusta & Co is proud to have acted as exclusive financial adviser to terralayr, one of Germany’s fastest growing Battery Energy Storage System (BESS) platforms, in raising both committed and contingent portfolio-level project financing. The financing was provided by a club of ABN Amro and Commerzbank and supports the construction of a portfolio of 9 assets totalling c.112 MW / 238 MWh.
This portfolio is the first in the German market to combine a portfolio-level tolling arrangement with optimisation of merchant revenues through terralayr’s digital flexibility commercialisation platform. The structure attracted strong interest across a variety of lenders, including commercial banks and institutional debt funds, demonstrating the growing appetite and liquidity for German BESS, particularly for strong sponsors with proven development and operating capabilities.
Augusta & Co successfully supported terralayr throughout the financing process, assessing multiple lender proposals, before securing a competitive financing package across pricing and other terms. The transaction has been structured to provide the company with sufficient flexibility to grow, scale and optimise the financing structure as its pipeline matures.
Robin Cresswell, CFO, terralayr commented: “We are very pleased with the outcome of the transaction. While the first of its kind BESS portfolio capacity tolling agreement provided for a strong revenue base, it also required constructive dialogue amongst the parties to achieve a solid structural framework. With this milestone achieved, we are well positioned for our growing project pipeline in Germany.”
Nikita Chandrashekar, Managing Director at Augusta & Co commented: “This transaction brings in experienced lenders into a relatively nascent German BESS financing market, demonstrating our client’s strength as a leading player in this space. We are pleased to see increasing liquidity and innovative structuring for flexibility products from financiers which will form an integral part of the energy transition. We congratulate our client and the lenders for structuring a facility with the ability to flex and scale alongside the business plan.”
Contacts:
Nikita Chandrashekar: NChandrashekar@augustaco.com
Romane Guitard: RGuitard@augustaco.com