Experience

Energy Project Financing

Zespół Elektrowni Pątnów-Adamów-Konin S.A.

Chadbourne represented Zespół Elektrowni Pątnów-Adamów-Konin SA (PAK) in the financing of a 460 megawatt lignite-fired facility, Pątnów II. The financing was done on a 60/40 debt to equity ratio and comprised of the following loans:

• €226.5 credit facility provided by a consortium of the European Bank for Reconstruction and Development (EBRD), Export Development Canada (EDC), WestLB and two Polish banks—Bank PEKAO SA and BRE Bank SA.
• 134 million PLN (€33 million) credit for financing of the value added tax provided by Bank PEKAO SA, WestLB, BRE Bank SA and EDC.
• 226 million PLN (€55.7 million) loan provided by Polish National Environmental Protection Fund.

The financing was structured to operate in a competitive electricity market once liberalization of the electricity market in Poland, required by the European Union, takes effect. It was also the largest financing for a power plant in Poland, as well as one of the largest power financings for the entire central and eastern European region at the time.