Burgenland Energie Secures EUR 1.3 Billion for Renewable Expansion

Deal News | Mar 12, 2025 | CEE Legal Matters

Burgenland Energie Secures EUR 1.3 Billion for Renewable Expansion

Burgenland Energie, a primary energy provider in Burgenland, Austria, has successfully secured EUR 1.3 billion in financing for its renewable energy project portfolio. This transaction is set to significantly expand Burgenland Energie's capabilities in wind and photovoltaic energy generation, with an initial goal of generating over 700 megawatts and ambitious plans to eventually reach 2,000 megawatts. This endeavor involved a corporate restructuring enabling the state of Burgenland to become a majority shareholder in an indirect subsidiary. The financing package involved complex equity and debt financing strategies with contributions from the European Investment Bank, Erste Bank, Landesbank Baden-Wuerttemberg, Raiffeisen Bank International, UniCredit, and institutional investors like Wiener Staedtische and Ampega. International law firm Baker McKenzie provided strategic advice on structuring the financing, while Binder Groesswang, in conjunction with Hogan Lovells, advised the financial institutions involved.

Sectors

  • Renewable Energy
  • Corporate Finance
  • Legal Advisory

Geography

  • Austria – Burgenland Energie Group is based in Austria, and the renewable energy projects will be situated in the state of Burgenland.
  • European Union – The financing involves major European financial institutions, such as the European Investment Bank and other banks from the EU region.

Industry

  • Renewable Energy – The article focuses on the expansion of renewable energy capabilities, specifically wind and photovoltaic projects, in the region of Burgenland.
  • Corporate Finance – The structuring and implementation of EUR 1.3 billion financing highlight corporate finance activities involving equity and debt instruments.
  • Legal Advisory – The involvement of law firms Baker McKenzie and Binder Groesswang signifies the role of legal advisory in structuring complex financial deals.

Financials

  • EUR 1.3 billion – Total amount for the renewable energy project financing.
  • EUR 500 million – Debt capital provided in the first round of funding by institutional investors.
  • EUR 725 million – Additional credit lines available to support future developments of up to 2,000 megawatts.

Participants

NameRoleTypeDescription
Burgenland Energie GroupTarget CompanyCompanyAn energy provider in Burgenland, Austria, leading a major renewable energy expansion project.
Baker McKenzieLegal AdvisorCompanyProvided legal advice on structuring and implementing the EUR 1.3 billion financing for the renewable project.
Binder GroesswangLegal AdvisorCompanyAdvised the banks involved in the financing process.
Hogan LovellsLegal AdvisorCompanyWorked alongside Binder Groesswang to advise financial institutions in the transaction.
State of BurgenlandMajority InvestorGovernmentEntered as a majority investor through a joint venture in an indirect subsidiary of Burgenland Energie.
European Investment BankFinancierCompanyOne of the financial institutions providing debt capital for the project.
Erste BankFinancierCompanyParticipated in providing financial support for the project.
Landesbank Baden-WuerttembergFinancierCompanyPart of the consortium providing financial backing for the renewable energy projects.
Raiffeisen Bank InternationalFinancierCompanyInvolved in the financial arrangements supporting the project.
UniCreditFinancierCompanyOne of the banks that provided financing for the project.
Wiener StaedtischeInstitutional InvestorCompanyContributed up to EUR 500 million in debt capital in the first round of funding.
AmpegaInstitutional InvestorCompanyPart of the institutional investors providing debt finance in the transaction.