Jump to content

Press release

European Energy unveils novel EUR 150M financing facility to propel renewable energy projects

Nov 22, 2023

European Energy has secured a novel five-year EUR 150 million Green Portfolio Financing Facility with SEB and DNB designed to accelerate the deployment of renewable energy projects.

European Energy, in collaboration with the two Scandinavian banks SEB and DNB, has announced the establishment of a new financial instrument designed to accelerate deployment of new solar and wind energy projects across 10 Northern European countries.

The EUR 150 million Green Portfolio-Financing Facility represents a paradigm shift for European Energy within construction financing. It will enable financing to a group of unnamed projects — as opposed to the usual, often cumbersome, project-by-project process.

Some of the key features of the facility are:

  • Portfolio Financing: Unlike traditional facilities that cover one project at a time, this funding can be applied to several projects simultaneously, even if they haven’t been specifically named yet. This makes it easier and faster to get these projects started.
  • Revolving Facility: The money is not just a one-off; as loans for individual projects are paid back, that money can be used again for new projects. This keeps the funding cycle going without the need for additional financing.
  • Criteria-Based Funding: Project funding is subject to a bespoke and efficient disbursement process based on pre-established criteria. This streamlines the process, so projects can start sooner. The criteria include pre-agreed debt-sizing and a format of due diligence.
  • Efficient and Secure: The financial arrangement includes a structure that spreads out the credit risk across different projects, which is more appealing for the lenders involved.

– We are thrilled to partner with SEB and DNB to launch this innovative facility. This marks a significant step forward in optimizing the financing process for our renewable energy initiatives in Northern Europe, ensuring that crucial projects can swiftly move from conception to execution, said Flemming Jacobsen, VP and Head of Group Treasury and Financial Planning.

– It has been an inspiring and exciting journey to develop this non-recourse construction financing together with European Energy. It is a privilege to support and work with European Energy, and it is of highest importance for SEB to facilitate an acceleration of the development and realisation of additional sources of renewable energy, says Michael Jonsén, Head of Project & Infrastructure Finance at SEB Denmark.

– We are delighted to have supported one of our key clients in the renewables sector with this highly bespoke financing solution. This deal highlights a growing focus amongst renewable energy companies to optimize its construction financing process, including cost of capital, operational burden and transaction costs. As a pioneer in many areas of its business, it is not surprising that European Energy is one of the first renewable companies to make this leapfrog on project financing, too, says Kristi Birkeland Sorensen, Global Head, DNB Renewables & Clean Tech.

The initial tenure of this facility spans five years, with the potential for two 1-year extensions, potentially reaching a 7-year tenure. Additionally, an accordion increase mechanism is included, offering the possibility to elevate the facility amount up to EUR 250 million, with the participation of both existing and new lenders.

The first allocations from this facility are expected to commence at the start of 2024, heralding a new chapter in green construction financing and reaffirming European Energy’s dedication to a greener, more sustainable future.

The facility is further entered into in accordance with European Energy’s Green Finance Framework.


Flemming Jacobsen

VP and Head of Group Treasury and Financial Planning.

+45 2010 3979

Ming Ou Lü

PR Manager

+45 3126 9376