Pacifico Renewables Yield AG has 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.

Dr. Martin Siddiqui, Co-CEO (left) and Christoph Strasser, Co-CEO

“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.

KeyFacts Energy Industry Directory: Pacifico Renewables