Bank of China (Luxembourg) Poland Branch contributes to the zł257.8 million PLN tranche of a zł289.5 million PLN syndicated loan for the 46 MW Mycielin Wind Farm Construction Project

Project narrative

On April 2, 2015, a syndicate of five banks — including Bank of China (Luxembourg) S.A., Oddział w Polsce (BOC Luxembourg) (Poland Branch) — entered into a zł289.5 million PLN ($77.14 million USD) syndicated loan agreement with Polenergia Farma Wiatrowa Mycielin Sp. z.o.o. — a Poland-incorporated special purpose vehicle wholly-owned subsidiary of Polenergia, S.A., which had Capedia Holdings Limited, a Cyprus-incorporated wholly-owned subsidiary of Luxembourg-incorporated China - Central and Eastern Europe Investment Co-operation Fund SCS SICAV-SIF, as a 15.99% minority shareholder — for the 46 MW Mycielin Wind Farm Construction Project. The loan was divided into two tranches: a zł257,800,000 PLN ($68.69 million USD) term loan tranche with an interest rate of 3-month WIBOR plus a margin, a maturity period of about 14.5 years, and a final maturity of September 15, 2029 with a repayment schedule of quarterly installments, and a zł31.70 million PLN ($8.45 million USD) VAT facility tranche. The loan was secured by (i.e. collateralized against) a registered pledge over assets related to Mycielin Wind Farm, pledge over the borrowers' shares, assignment of claims under project contracts, equity contribution agreement and sponsors' support agreement, subordination of equity contribution agreement, and statement of voluntary submission to enforcement. BOC Luxembourg, Alior Bank S.A., and Bank Ochrony Środowiska S.A. contributed to the zł257.8 million PLN tranche, while Bank Zachodni WBK S.A. was the sole contributor to the zł31.7 million PLN VAT facility tranche. Bank Zachodni WBK served as agent but not participate in the syndicate. The proceeds were used by the borrower to finance the construction of the Mycielin Wind Farm, a 46 MW wind farm located near Mycielin, Gościelin, Gościeszowice, Długie, Dzikowice, and Sucha Dolna, in Niegosławice and Szprotawa communes in Żagań County, Lubusz Voivodeship. It consisted of 24 V110 2.0 MW turbines with the tower height of 125 meters and rotor diameter of 110 meters. The project generated 136,000 MWh electricity, offsetting 86,768 tons of carbon dioxide emissions (CO2) a year. The turbines were supplied under a supply contract with VESTAS Poland Sp. z o.o. and VESTAS Northern Europe A/S signed on February 9, 2015. A consortium of Erbud S.A. and Przedsiębiorstwo Budownictwa Drogowo-Inżynieryjnego S.A. was responsible for construction per a contract signed on February 11, 2015. The wind farm received its occupation period in February 2016. The project was commissioned in February 2016. In April 2017, the EW3 turbine failed and was dismantled, leaving only 23 turbines. On December 10, 2019, Polenergia Farma Wiatrowa Mycielin Sp. z o.o. prepaid zł4,896,880 PLN, reducing the last instalment to be repaid.