ING Bank Slaski (as Facility Agent), PKO Bank Polski and mBank are in a consortium of banks that have provided loans totaling PLN 776 million for the construction of Kleczew Solar & Wind, Poland’s first large-scale solar-wind farm with a capacity of more than 200 MW. The farm is located on post-mining land in the Konin powiat, Wielkopolskie voivodeship.
Kleczew Solar & Wind will be one of the largest renewable energy parks in Central and Eastern Europe, and the first large-scale project in Poland to combine solar and wind technologies. In the first stage of the project, the construction of which has already begun, 193 MWp of photovoltaic panels and about 12 MW of wind turbines will be connected to the grid. Thanks to the use of advanced technologies, including modern n-type photovoltaic panels, the energy generated by the Kleczew power plant each year will cover the demand of over 100,000 households. In the subsequent expansion stages, the power plant will be enlarged to about 250 MWp of solar capacity, as well as with additional wind turbines and energy storage. The energy from the Kleczew farm will flow to consumers as of late 2023.
– Supporting environmental transformation and financing pro-environmental investments is a strategic direction for us. As a bank, we are not only a source of financial support, but also a source of knowledge, best practices, and innovative solutions in as the area of sustainable development. We are happy to facilitate one of the largest renewable energy investments in Central and Eastern Europe and the first project in Poland to combine solar and wind energy – says Michał Mrożek, Vice President of the Management Board of ING Bank Śląski.
– We would like to thank Lewandpol Holding for its trust. We are glad that we can support the implementation of such an interesting project, and at the same time contribute to the transformation of the Polish energy sector. As Poland’s largest bank for corporations and businesses, we provide the best specialists in investment financing for our clients – says Marcin Majewski, Director of PKO Bank Polski’s Corporate Client Relations Division.
– The investment is perfectly in line with mBank’s strategy, a pillar of which is financing the green economy. The project combines wind and solar energy production, all within the framework of post-mining land reclamation. It is therefore a perfect example of the eco-transformation we want to support – says Adam Pers, mBank’s Vice President of the Management Board for Corporate and Investment Banking.
– Every investment in RES is an important step towards increasing the country’s energy security and stabilizing the economy. Last year alone, fossil fuel imports cost Poland about twice as much as in 2021. Added to this are the prices of CO2 emission allowances, generating further costs that are reflected in higher prices for products and services. The energy transition in Poland is indeed happening, but it takes time. Our role as PFR is to support entrepreneurs and investors in the implementation of ambitious energy projects so that the green transformation accelerates – said Paweł Borys, president of the PFR.
– For us, this is a strategically important project and a symbolic step towards decarbonizing Polish economy and providing cheap and clean electricity. Together with the Ergy team, we paid special attention to the significant participation of reputable Polish suppliers and contractors in the supply chain. With a view to further expansion of the project, it was extremely important for us to secure long-term financial partners who are leaders in financing the RES investments in Poland. We chose ING Bank Slaski, PKO Bank Polski, mBank and PFR, and we are very impressed with the professionalism and commitment of their representatives – said Andrzej Lewandowski, CEO of Lewandpol Holding.
The senior financing package for the project was complemented with a subordinated loan of up to PLN 90 million provided by the Polish Development Fund as part of its commercial investment activities. This brought the total external financing secured for the investment to PLN 866 million. As part of the bank financing, the company obtained a term loan, a VAT loan and a limit for the debt service reserve. In addition, the banks will participate in hedging interest rate and foreign exchange rate risks. Meanwhile, the main purpose of the PFR loan is to create conditions for further expansion of the project.
The Kleczew Solar & Wind project was prepared by E&G of the Lewandpol Group as the investor, and Ergy as the project’s asset manager and lead advisor to the investor. The transaction proceeded with the support of DNV as an independent technical advisor and the law firms CMS (advisor to the borrower), Norton Rose Fulbright (advisor to the Banks) and GESSEL (advisor to the Polish Development Fund).
About Lewandpol Group
Lewandpol Group is one of the leading Polish private investors operating in the field of Renewable Energy Sources. Its owner, Andrzej Lewandowski is an entrepreneur, sportsman, and a racing driver. Historically, the Group has been involved in investments in wind farms at an early development stage. Since 2014, the Group has been developing its investment activities under the “family office” formula, which focuses on mature RES investments in Poland (i.e., at around ready-to-build or later stages). In addition to the construction and upcoming expansion of Kleczew Solar & Wind, the Group also manages the 67.5 MW Lańcut Wind Farm, built in 2015, and is actively seeking further similar investments.