The refinancing of Yeni Elektrik debt successfully closed

The situation after the refinancing will allow the power plant to have a more sustainable debt profile also considering the envisaged improved conditions of the electricity market in Turkey in the next years

The refinancing of Yeni Elektrik debt successfully closed

Ansaldo Energia is happy to announce that today after a long lasting negotiation the refinancing of Yeni Elektrik debt was successfully closed.

Yeni Elektrik is a minority investment of Ansaldo Energia (40%) owning a power plant in Gebze (industrial zone of Istanbul) with the majority Shareholder (60%) being Unit Investment N.V.. The recent and current situation in the electricity market in Turkey made the previous USD debt profile of Yeni Elektrik, originally agreed in 2011 when the project started, unsustainable.

The refinancing is achieved through a Subordinated Loan of USD 120 million to Yeni Elektrik  with an approximate 2,4 years final maturity (31 December 2019) from a Finance Vehicle in the Netherlands (AU Finance Holding BV) where Ansaldo Energia has a 40% ownership and Unit Investment N.V. is the majority shareholder with 60% ownership.  The Finance Vehicle has funded the Subordinated Loan to Yeni Elektrik by way of a Secured Loan of the same size and maturity and arranged by Nomura International plc.  Unit and Ansaldo Energia each undertake on a joint and several basis to inject into the Finance Vehicle all the equity which will be necessary for the Finance Vehicle to fully service the Secured Loan should payments received from Yeni Elektrik under the Subordinated Loan not be sufficient to do so. The Secured Loan shall benefit from security over the shares of Unit and Ansaldo Energia in the Finance Vehicle, its USD account and an assignment of the rights of the joint and several undertakings of each of Unit and Ansaldo Energia.

In addition, by way of a sale and purchase agreement, Ansaldo has undertaken to purchase up to USD 45 million of the Secured Loan for upon 90 days of the closing date.  The amount that Ansaldo will effectively purchase of the Secured Loan shall be reduced to the extent of its subscription by financial institutions within 90 days of the closing date.

As a consequence of the Subordinated Loan the existing Senior Project Loan was also amended, including a grace period in respect of the principal repayments being granted to Yeni Elektrik until 31 December 2019.

The situation after the refinancing will allow the power plant to have a more sustainable debt profile also considering the envisaged improved conditions of the electricity market in Turkey in the next years.

Ansaldo Energia was assisted in the legal discussion by Chiomenti law firm.