The operation consists in refinancing a portfolio of 220 megawatts of wind power (26 megawatts on land and 194 megawatts offshore) in the United Kingdom. Its main shareholder is Centrica, one of the bank’s main clients in the United Kingdom. After completing the construction and commissioning of the wind farms, Centrica has refinanced the portfolio through a project-finance transaction and has sold 50% of its stake to TCW Asset Management Company. Centrica has undertaken to maintain the shareholder structure for 8 years following the financial close. BOREAS has also entered into purchase agreements lasting for the life of the loan for electricity and “green” certificates (ROCs) and climate change levy exemption certificates (LECs) through British Gas Trading Limited (BGTL), a subsidiary of Centrica.

This transaction opens up new business opportunities in the British energy market, where the companies have plans to install more than 30,000 megawatts of wind power in offshore farms by 2020. Among the companies with permits to develop projects in English and Welsh waters are Scottish and Southern Energy (SSE), RWE npower, EoN, Centrica, Scottish Power, EDF and Shell. Rights for more than 6,000 megawatts have also been granted in Scotland.

The success of BBVA’s participation in BOREAS is further evidence of the close collaboration between the Bank’s units that are involved in the process, such as Global Clients, Project & Structured Finance London and Project Finance Energy, Syndications, Global Markets, Risks, Legal Services and the Risk & Portfolio Management wholesale area.