Windpark and Solar Power Plant Operators engage BOP with the review of their Financing Agreements in Italy

Our clients operate wind energy and photovoltaic plants in the role of Asset Managers for institutional investors, as well as on their own account. Our clients engaged BRANDHOFF OBERMÜLLER PARTNER with the review of their financing agreements for five of their power plants in Italy. The subject matter of the agreement reviews is to examine the financing interest rates and the collateral clauses, including the claim assignments to the Gestore dei Servizi Energetici S.p.A. (GSE), compensation for early repayments, contractual penalties, and other penalties, as well as termination options.

The financing agreements that have been entered into in the past, that include loan and leasing agreements, contain very high nominal interest rates as compared to the rates available in other European PV markets. As a consequence of government grid feed subsidy cuts, tax increases and sinking minimum rates for the so-called ritiro dedicato and low market prices for electricity, power plant returns are in negative territory. The Italian Civil Code, the Codice civile, provides more extensive protections for financing recipients – also in the case of financing transactions between businesses – than other legal systems. For example, agreed interest rates may be reduced and other agreement clauses may be adapted, if certain conditions are met.

For legal and tax questions regarding solar and wind power plants in Italy please contact Attorney Dr. Stefan Brass or Attorney Laura Schulze Egberding, Kaiserstraße 53, D-60329 Frankfurt, info(@)bop.legal, www.bop.legal, Tel:  +49 (0)69 34 87 92 00.