BNP Paribas Energy Commodities Export Project has successfully closed on 4th November 2004 the EUR 119 million financing of Elettra GLL, an Italian 300 MW power generation company, purchased by UK private equity firms Hutton Collins and Oxenbridge & Co from Italian steel group Lucchini and major German utility RWE.
BNP Paribas Energy Commodities Export Project acted as sole Mandated Lead Arranger and Underwriter of this 12-year limited-recourse financing comprising a EUR 109 million senior tranche and a EUR 10 million subordinated tranche.
The financing structure was designed to account for the specifics of each group of plants owned by Elettra, namely the Hydro Group and the two cogeneration plants contracted under the CIP6/92 regulatory framework.
The proceeds of the financing were used for the purchase of the company’s shares and the refinancing of its existing indebtedness.
The senior tranche is now in the process of being syndicated.
This ground-breaking transaction is the first long term limited recourse project finance in continental Europe involving financial equity.