ERSTE BANK PAN-EU WIND POWER PACKAGE RS

The project is an underlying operation under the PAN-EU EIND POWER PACKAGE RISK SHARING Lending Envelope with Erste Bank AG to enable new investment in wind energy in the European Union through guarantees on advance payment and performance bonds associated with supply contracts of EU manufacturers (Original Equipment Manufacturers or "OEMs") of wind equipment including grid interconnectors. The project will be implemented as an unfunded partial delegation linked risk sharing transaction with the financial intermediary, supporting it in providing certain types of guarantees in relation to the obligation of manufacturing companies (OEMs) for the supply of wind farm and the related wind value chain components (such as turbines, grid connector's infrastructure, cables, transformer stations, sub-stations and possibly sub-contractors).

The aim is to support the European Union's wind energy sector. The lending envelope is a dedicated guarantee programme to allow banks to provide additional guarantees related to supply contracts of wind energy equipment manufacturers in the EU. The envelope is expected to mobilise investments into wind power-related equipment. The sub-operations will be limited to manufacturing companies with production and/or assembly capacity in the EU for the supply of wind farm and related value chain components (such as grid connectors and transformers) to be used in wind energy projects in the EU.

The operation will contribute to the InvestEU objective of developing the energy sector. 

The ambitious policy decarbonisation targets set in the 2030 require significant investment in renewable energy production capacity, notably in onshore and offshore wind energy infrastructure in Europe. This in turn requires a scale up of the supply chain manufacturing industry and ability to deliver components, services, and materials in a timely manner. It also requires an increased access to advance payment and performance guarantee lines for the OEMs, in a context of financial pressure and with commercial banks reaching their exposure concentration limits vis-a-vis OEMs.

As the first transaction of this type with a financial intermediary located in Central and Eastern Europe (CEE), it will enable the activation of under-utilised already installed strategic Net-Zero technology manufacturing capacity of wind energy OEM suppliers in CEE region. This enabling effect will help support the proper functioning and access to finance of the entire wind-energy supply chain and will, in turn, contribute to deploy additional renewable energy generation capacity that will eventually be installed in Europe. EIB contributes by providing a flexible risk sharing instrument that can be adapted to the specific financial needs of the wind-energy value chain.

The operation would not have been carried out (to the same extent) by the EIB without the InvestEU support.

Sub-projects need to comply with the EU acquis, in particular in the field of environment, the EIB will require to the final recipients under the new portfolio to take all the requisite measures to ensure that the environment procedures carried out will comply with the relevant EU environment, social and procurement legislation and the applicable national legislation, provided that it is in conformity with EU rules.

Sub-projects need to comply with the EU acquis and the EIB will require to the final recipients under the new portfolio to take all the requisite measures to ensure that procurement procedures carried out will comply with the relevant EU procurement legislation and the applicable national legislation, provided that it is in conformity with EU rules.