EUR 45m

December 2018

AEB

Raising non-recourse project financing for development and operation of waste wood-fired power plant

  • AEB provides waste solutions for a clean and sustainable society, now and in the future. through converting waste into sustainable electricity, district heating and high-quality construction materials;
  • Early 2018, AEB had the objective to become the sole shareholder of and further develop the 38MW waste wood fired Bio-energiecentrale Amsterdam (‘BEC’). In March 2018 Avaxa was engaged by AEB / BEC to assist in raising EUR 45mln non-recourse construction and project financing;
  • After analysing BEC’s credit profile Avaxa developed the preferred financing structure and syndication strategy. On the basis of this, the shareholder decided to initiate the financing raise process and approach the financing markets by inviting a long list of 12 potential lenders;
  • Prior to launch in the financing markets, we worked in close co-operation with amongst others AEB’s external legal advisor to restructure and amend the entire contractual framework of project agreements to enhance bankability;
  • In December 2018, BEC/AEB closed the EUR 45mln non-recourse project financing with ASN Bank against very competitive terms & conditions after which construction immediately commenced; and
  • During the entire process we were in continuous dialogue with the Board and Supervisory Board of AEB, both in its capacity of shareholder and counterparty under various project agreements as well as the Municipality of Amsterdam as ultimate shareholder of BEC and as shareholder of Westpoort Warmte B.V., the offtaker of the heat produced by BEC, to keep them fully aligned to the process.