Gruenwald, November 5, 2020 – Today, Pacifico Renewables Yield AG (ISIN: DE000A2YN371) (the “Company”) signed an agreement to acquire a 15.6 MW onshore wind farm in Germany from a subsidiary of New Energies Systems AG (Mayen, Rhineland-Palatinate), an unaffiliated project development company. The wind park is currently at an advanced stage of construction and is scheduled for completion in early 2021. Once fully operational, the project is expected to produce approximately 37 GWh of green electricity per year, contributing to an annual reduction of CO2 emissions of almost 30,000 tons. Following the purchase of a 21.2 MW photovoltaic portfolio in the first half of 2020, this second significant transaction in 2020 will grow the capacity of the Company’s portfolio by approximately 19% to 96.6 MW. In connection with this acquisition, the Company’s revolving credit facility will be increased to EUR 16.3 million which will allow for a fully debt-financed acquisition.
The onshore wind park is located close to Reudelsterz in Rhineland-Palatinate and comprises five Nordex N131 wind turbines with an expected total capacity of 15.6 MW. Land lease agreements, mostly with a tenor of at least 28 years and easements have been secured and an up to 20-year full scope operations and maintenance agreement with a technical annual availability guarantee of 98%¹ is in place. The wind farm will benefit from a 20-year statutorily determined remuneration of EUR 79.3 per MWh (incl. current correction factor²) under the German Renewable Energy Law (EEG 2017). Once fully operational, the total initial P50³ electricity production is expected to be approximately 37 GWh of green electricity p.a., which would result in annual revenues of approximately EUR 2.9 million. The parties agreed on an enterprise value of EUR 35 million, including senior project financing provided by a reputable German bank. Closing of the transaction is subject to certain conditions, including the commissioning of all turbines and successful completion of the trial period, and is expected to occur in early 2021.
“With the acquisition of this onshore wind park, we are not only adding an additional stable 20-year German feed-in tariff-based revenue stream to our portfolio. We are also demonstrating our ability to execute attractive growth opportunities beyond our strategic partner’s development pipeline” highlights Co-CEO Christoph Strasser.
Initial financing of the purchase price for this acquisition will be realized solely by the Company’s existing revolving credit facility provided by Triodos Bank N.V. In connection with this transaction, the facility will be upsized from currently EUR 8.35 million to EUR 16.3 million. The facility can be drawn for up to 18 months at an interest rate of 3.85%.
Co-CEO Dr. Martin Siddiqui adds: “Applying this tailored structure to finance acquisitions is another proof of concept for our key priority to operate with minimal dry powder and for our agility. The additional financial flexibility provided by the increased RCF will also be of strategic importance going forward to execute our growth plans and continue demonstrating rigorous financial discipline.”
Greenberg Traurig acts as legal counsel, DNV GL is appointed as technical advisor and Pacifico Energy Partners GmbH as broker to the Company.
About Pacifico Renewables Yield AG
Pacifico Renewables Yield AG is an independent energy producer listed on the open market of the Dusseldorf Stock Exchange with additional requirements (Primärmarkt) (ISIN: DE000A2YN371) with the aim of building up a gradually growing portfolio of plants for energy generation from renewable sources. With operational wind and photovoltaic power plants spread across Europe, the Company offers a clear and diversified profile with stable and predictable earnings.
This press release may contain certain forward-looking statements, estimates, opinions, and forecasts concerning the future business situation, earnings situation, and results of Pacifico Renewables Yield AG (“forward-looking statements”). Forward-looking statements can be identified by words such as “believe”, “estimate”, “anticipate”, “expect”, “intend”, “will”, or “should” and their negation and similar variations or comparable terminology. Forward-looking statements include all matters that are not historical facts. Forward-looking statements are based on the current opinions, forecasts and assumptions of the Management Board of Pacifico Renewables Yield AG and involve significant known and unknown risks and uncertainties, therefore actual results, performance and events may differ materially from those expressed or implied by forward-looking statements. Forward-looking statements contained herein should not be construed as guarantees of future performance or results and are not necessarily reliable indicators of whether or not such results will be achieved. The forward-looking statements contained in this release are only valid on the date of this publication. We will not update the information, forward-looking statements or conclusions contained in this release in light of subsequent events or circumstances, nor will we reflect subsequent events or circumstances or correct inaccuracies that arise after the date of this release as a result of new information, future developments or otherwise, and we do not assume any obligation to do so. We do not assume any responsibility whatsoever that the forward-looking statements or assumptions contained herein will occur.
¹ 90% in the first 90 days, thereafter 98%, and 97% from year 16 onwards.
² The correction factor is used to partially compensate for differences between locations with different wind intensities in order to enable nationwide competition between locations with different wind yields.
³ A P50 level of production indicates that according to the underlying analysis a 50% probability exists that the electricity generated from a project will exceed a specified aggregate amount of electricity generation during a given period.