The company, fully held by EP Produzione S.p.A. (100% EPH Group), has been financed by
Banco BPM, BPER, DZ BANK, MUFG, SMBC Bank EU AG and UniCredit
A pool of banks led by UniCredit recently finalized a EUR 320m mini-perm project financing in favor of EP Centrale Ostiglia S.p.A., a company fully held by the shareholder EP Produzione S.p.A. and indirectly owned by the sponsor EP Power Europe a.s., 100% EPH Group.
The project implies the construction and operation of a new combined-cycle gas turbine (CCGT) unit for a total nominal capacity of 880MW, built with state-of-the-art technology.
The new unit - which has been awarded with a 15-year Capacity Market contract effective 2024 with the Italian TSO (Terna S.p.A) - will contribute to the path towards a sustainable energy transition in Italy and to the stability of the national electricity system, thanks to its highly flexible and low-emission production, compensating the intermittency of renewables and favoring the achievement of the decarbonization goals set by the Italian Integrated National Energy And Climate Plan.
The new asset, to be realized in an existing industrialized area (hence without exploiting new land), is technologically ready for the use of mix of hydrogen and natural gas, and it is also equipped with an air condenser to mitigate the impact on water natural resources, increasing the unit availability and reliability also during the more frequent dry seasons.
The innovative structured finance transaction within the energy sector was originated, set-up and coordinated by UniCredit in its role of Global Coordinator & Bookrunner, Structuring Mandated Lead Arranger, Original Lender and Hedging Bank, and underwritten also by a unique set of local and international banks as Banco BPM, BPER, DZ BANK, MUFG and SMBC Bank EU AG as Mandated Lead Arrangers, Original Lenders and Banco BPM, BPER, MUFG and SMBC Bank EU AG as Hedging Banks, with BPER also acting as Account Bank & Agent.
In addition to this project, EP Produzione is also developing another 800 MW CCGT unit, with latest H class technology, in Tavazzano and Montanaso power plant. Both projects, for a total of 1.600 MW new capacity, will introduce to the Italian energy market a new level of efficiency and flexibility within the needed programable power generation.
Legance - Avvocati Associati supported the Lenders as Legal Advisor, while PedersoliGattai as the Borrower Legal Advisor. Fichtner and Willis Towers Watson acted as Technical-Environmental and Insurance Advisors respectively. PricewaterhouseCoopers S.p.A. acted as model auditor.
Milan, 18 April 2024
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