Baker McKenzie has successfully advised Burgenland Energie Group, the leading energy provider in Burgenland, on structuring and implementing a EUR 1.3 billion portfolio project financing in the renewable energy sector.
The transaction involved a complex corporate restructuring and equity financing through the entry of the state of Burgenland as a majority investor in an indirect subsidiary of Burgenland Energie AG. Baker McKenzie provided comprehensive advice to Burgenland Energie Group on both the restructuring and the negotiation of the joint venture with the state of Burgenland.
In parallel, Baker McKenzie led the completion of the portfolio project financing, with prominent Austrian and European financial institutions, including European Investment Bank, Erste Bank, Landesbank Baden-Württemberg, Raiffeisen Bank International, and UniCredit, as well as institutional investors such as Wiener Städtische and ampega, providing up to EUR 500 million in debt capital in the first financing round.
The debt is intended to fund the further expansion of renewable energy (wind and photovoltaics) in Burgenland. In the first expansion stage, wind and photovoltaic generation projects with a capacity of over 700 MW are to be built in Burgenland. Further future expansion stages are planned for the financing of projects totalling up to 2,000 MW. For these purposes, the financing agreements provide for additional credit lines in an additional amount of approximately EUR 725 million, which can be used by Burgenland Energie to fund further projects.
The closing of the entire transaction took place in the last quarter of 2024. This significant transaction is a significant milestone towards the state of Burgenland’s goal of achieving net zero emissions by 2030.
"We are very proud to have supported Burgenland Energie Group in this groundbreaking transaction. This success underscores our strength in supporting large-volume, cross-border transactions," explained Dr. Eva-Maria Ségur-Cabanac, Partner, Baker McKenzie.
"It has been a privilege for our team to support Burgenland Energie Group in delivering this major milestone towards the decarbonisation of the state of Burgenland by 2030. Our ability to deliver integrated advice across jurisdictions and disciplines has been key to the delivery of this complex transaction.” said Philip Thomson, Partner Baker McKenzie, London and Robert Wippel, Partner Baker McKenzie Austria.
“Securing this financing is a major milestone for Burgenland Energie. It enables us to significantly expand our renewable energy projects and move towards energy independence. The financing structure is not only innovative for the Austrian market but also sets a benchmark how major green transformation projects can be financed in Europe. The industry knowledge and cross-border expertise of Baker McKenzie significantly contributed to the success of the transaction”, said Reinhard Czerny, CFO of Burgenland Energie.
The entire transaction was legally and operationally highly complex, as multiple areas of law were intertwined. Our in-house legal team oversaw the process comprehensively, and the close collaboration with the Baker McKenzie team was essential to the successful completion of this transaction,”, said Stefan Zleptnig, Head of Legal Burgenland Energie.
Led by Eva-Maria Ségur-Cabanac (Corporate/M&A Partner, Vienna), Philip Thomson (Energy & Infrastructure Partner Partner, London), Robert Wippel (Banking & Finance Partner, Vienna)
Team:
Vienna:
Clara Fercsak (Associate, Corporate/M&A), Sophie Schubert (Associate, Corporate Reorg), Philipp Stanek (Counsel, Corporate Reorg, Tax), Edmund Schuster (Counsel, Corporate/M&A), Andreas Traugott (Partner, Antitrust), Nina Lenhard (Associate, Antitrust), Filip Peric (Real Estate, Projects), Wolfgang Eigner (Real Estate, Projects), Georg Diwok, (Partner, Banking & Finance), Balint Ozsvar (Associate, Banking & Finance), Elias Parzer (Associate, Banking & Finance)
London:
Andrew Hedges (Partner, Projects), Philippe Bernier-Cormier (Associate, Banking & Finance), Adam Gardener (Associate, Banking & Finance), Natalie Lawman (Associate, Banking & Finance)
Frankfurt:
Kathrin Marchant (Partner, Banking & Finance), Marta Zuliamis (Counsel, Banking & Finance)