Largest PV Financing For Central Europe

CMS Cameron McKenna LLP in Bulgaria recently completed the largest Photovoltaic (PV) project financing in Central and Eastern Europe (CEE) for SDN Company, the largest Korean PV investor in Bulgaria and the region. The financing for $200 million was provided for the completion of two 42 MWp installed capacity PV projects, located in the region of Veliko Tarnovo, in the central part of Bulgaria. This landmark deal was not just a very complicated one, but it also involved some major Korean players including the largest Korean financial institution - Korean Development Bank (KDB) with co-financers: Korean Financial Corporation (KoFC), Hyundai Marine & Fire Insurance, Green Cross Life Insurance, KT Capital and Tong Yang Life Insurance. This is the first financing provided by KDB in the region.

Shareholders in the two project companies (RES/ASM) include: SDN Company (the largest PV investor in Korea) and Korean South - East Power (KOSEP), a subsidiary of KEPCO (the largest power generation company in Korea). Citi Bulgaria was appointed as the bank leading the transaction in Bulgaria. 

CMS assisted the largest and most prominent Korean law firm with the negotiation and acquisition of the remaining minority shares from the original developers of both projects; changed the legal form of the companies, assisted in all corporate related matters; completed the legal due diligence and provided detailed regulation advice, reviewed and completed the Loan agreement and all financial documents, as well as the related security package. 

Client relationship partner and Bulgarian energy practice head Kostadin Sirleshtov says: “It is an honour for us to be in a position to assist in the largest project financing in the Photovoltaic sector in Central and Eastern Europe. CMS Sofia was involved in the projects from the very beginning and we are very much looking forward to complete the construction of the projects within 2011. This project gave us the opportunity to work for the largest Korean investors in the region and with the most prominent Korean law firms. We would like to congratulate all involved for this great achievement. ”

SDN is a key Asian investor in Bulgaria with potential to grow to other European markets as well.  They are considering further projects in Bulgaria and expansion in the region and are already looking into opportunities in nearby countries.