Renalfa IPP, an independent power producer focused on renewable energy, has secured €315 million Holdco Financing to support its green energy expansion across Central and Eastern Europe. The funding comes from a consortium of lenders led by the European Bank for Reconstruction and Development (EBRD), and includes contributions from other institutions such as Black Sea Trade and Development Bank (BSTDB), OTP Bank, Nova Ljubljanska Banka (NLB), UniCredit, and Kommunalkredit.

The financing will help drive a €1.2 billion investment programme that will support the development and operation of around 1.6 GW of renewable energy generation capacity and approximately 3.3 GWh of co-located Battery Energy Storage Systems (BESS) in Bulgaria, Hungary, Romania, and North Macedonia. Once fully operational, these assets are expected to generate around 2.3 terawatt-hours (TWh) of clean electricity annually—enough to power around 920,000 households. The inclusion of battery storage systems will help address the intermittency of renewable power and enhance grid stability across the region.

The EBRD is contributing €100 million from its own account and has mobilised another €100 million from commercial lenders through an A/B loan structure. This transaction is notable for being the first time the EBRD has mobilised funds using InvestEU’s first-loss guarantee for an A/B loan, allowing participating commercial banks to indirectly benefit from EU-backed risk-sharing. This is especially significant in projects involving merchant-based renewable power and innovative storage technologies, which typically carry higher risk.

Ivo Prokopiev, CEO of Renalfa IPP, mentioned, “The successful raising of growth funding is an important milestone for Renalfa IPP and for our whole group. It proves the competitiveness of our integrated model for developing, investing and operating large hybrid assets. The early implementation of long duration co-located BESS allows Renalfa IPP to start offering green baseload products to market in CEE for the first time. We are proud, together with our partners from RGREEN INVEST, to be at the forefront of energy transition not only in CEE, but in the whole EU.”

Mathilde Ketoff, Partner at RGREEN INVEST, said in a statement, “At RGREEN INVEST, we are incredibly proud to support this landmark financing and to deepen our partnership with Renalfa. Renalfa IPP’s pioneering spirit, invaluable expertise and established leadership is key to drive the energy transition across Central and Eastern Europe. Our strong belief in this collaboration, which began in 2022, is further solidified by our decision to reinject equity into our venture. We are looking forward to working even more closely together with Ivo and his team over the long term.”

As an implementing partner of the EU’s InvestEU programme, the EBRD plays a central role in supporting sustainable investment, innovation, and job creation across the EU. The programme aims to generate more than €372 billion in additional investments between 2021 and 2027. From 2022 to 2027, the EBRD plans to leverage €777 million in InvestEU guarantees to finance up to €2.7 billion in various eligible sectors.

Kommunalkredit served as the sole financial advisor to Renalfa IPP, and its lending team acted as joint global coordinator alongside UniCredit. Legal support was provided by A&O Shearman for the lenders and Ashurst for Renalfa IPP. In addition to the financing, the EBRD will assist in setting up a training programme on BESS technologies for current and future energy professionals in the region. This will be carried out under the InvestEU Advisory Hub. Renalfa will also collaborate with regional universities to promote careers in the energy sector, particularly among women, as part of a broader outreach initiative.

Matteo Patrone, Vice President, Banking at the EBRD, stated, “This is a landmark transaction, which will accelerate the much-needed deployment of renewable energy, reduce reliance on fossil fuels, and strengthen energy security in a region still heavily dependent on carbon-intensive sources. We are proud to have been able to support this transaction, and, leveraging an InvestEU guarantee, to mobilise private sector investors to achieve a strong regional impact.”

Christian Beynio, Head of Advisory at Kommunalkredit, also added, “Renalfa IPP is a major and visionary player in the renewable energy sector, and we are proud to have advised the company and its shareholders in structuring and raising liquidity for this landmark HoldCo Financing in the CEE region. The transaction reaffirms Kommunalkredit’s strength in delivering financing solutions for clients in the infrastructure and energy sector.”