New standards for the energy transition: Hogan Lovells advises CEE Group on multibillion-euro repowering project

The project aims to achieve comprehensive repowering: outdated wind turbines and PV modules will be replaced with highly efficient next-generation systems to ensure operation for at least another 20 years. The modernization will almost triple electricity production. The portfolio’s currently installed capacity of around 457 MWp is expected to rise to up to 1.1 GWp through the repowering. This not only improves the environmental footprint but also significantly increases the profitability of the plants.

The repowering project reflects the CEE Group’s clear strategic focus: the megatrend of repowering is crucial for the energy transition, particularly in Europe, where many assets built in the 2000s and 2010s are reaching the end of their lifecycle.

Hogan Lovells advised CEE Group on structuring and negotiating a comprehensive facilities agreement that allows the company to react flexibly and robustly to the complex requirements of the repowering project.

The agreement includes following components:

• Refinancing facility to replace the existing legacy loans,
• Construction bridge facility to finance the repowering measures,
• Debt service reserve facility to ensure liquidity,
• LC facility (letter of credit) to provide guarantees to contractual partners,
• VAT facility to cover value-added tax requirements,
• Uncommitted accordion options totalling EUR 560 million, providing additional financing capacity if needed.

"The legal support provided by Hogan Lovells was crucial to the success of this complex transaction. The team guided us through the entire process with the utmost professionalism and a deep understanding of the specifics of our innovative financing structure. We felt well advised and in very good hands at all times," says Franjo Salic, CIO of the CEE Group.

"With this exemplary project, we are setting a clear milestone for the next generation of renewable energy assets", says Dr. Carla Luh, Partner and Head of the German Finance practice at Hogan Lovells. "The refinancing and repowering demonstrate how financial innovation and climate action can go hand in hand."

"We are pleased to have supported the CEE Group in sustainably modernizing its infrastructure and strengthening the long-term performance of its assets", adds Counsel Dr. Alexander Wandt.

Hogan Lovells' highly experienced Infrastructure Finance team brings extensive expertise in complex financing structures and is one of the leading advisors on large-scale renewables transactions in Europe. With its deep market knowledge and interdisciplinary approach, the team regularly advises on strategic future-oriented projects that are driving the energy transition forward.

Hogan Lovells team for CEE Group

Dr. Carla Luh (Partner), Dr. Alexander Wandt (Counsel), Julian Schulz (Associate), Fotios Erifopoulos (Associate), Gordon Liedel (Associate), Dr. Maximilian Frystatzki (Senior Associate), Stipe Bojanic (Counsel), Kathy Chang (Senior Associate), Edris Zewari (Associate), Dr. Marzieh Rad (Associate) (all Infrastructure Finance, Germany);

Ariane Mehrshahi (Partner), Agnes Merz (Senior Associate), Carla Valdés Cortés (Senior Associate), Eszter Voros (Associate) (all Finance, Luxembourg);

Romain Marchand (Partner), Margot Derumaux (Senior Associate), Noémie Lisbonis Boyer (Senior Associate), Alexia Legrand (Associate), Astrid Layrisse (Senior Associate), Camille Jaillant (Associate), Jeangély Ampion-Liyono (Associate), Josette Mokuba Iklawa (Associate) (all Finance, Paris);

Dr. Tim Heitling (Partner), Dr. Daniel Neudecker (Counsel), Nurelia Kather (Senior Associate), Camillo Gaul (Associate) (all Due Diligence, Berlin);

Sebastian Oebels (Counsel, Hedging, Frankfurt).

Eight Advisory for CEE Group

Thomas Gummert (Partner), Mathias Köhler, Marco Goretzka, Tristan Lizardo Schwarze (Financial Advisory)

Consortium of banks

CIBC, Canadian Imperial Bank of Commerce

KfW IPEX-Bank GmbH

ING Bank, a branch of ING DiBa AG

Skandinaviska Enskilda Banken AB (publ) Frankfurt Branch

SMBC Bank EU AG

UniCredit Bank GmbH