Handelsbanken Finans continues to show its greencredentials with a €200m lease and loan financing for a power plant
in Finland.
The deal, which follows similar- sized ones in terms of value
and type, involved financing being provided through Handelsbanken
Finans’ Swedish branch and the structuring and client liaison
taking place in Finland. Such offshore-type arrangements means the
lessor can take advantage of high capital allowances in
Sweden.
Go deeper with GlobalData
Access deeper industry intelligence
Experience unmatched clarity with a single platform that combines unique data, AI, and human expertise.
The deal includes €135m of financing lease and €65m of loans
over a 10 year period. The assets being financed include engines
and equipment at a mill site in Lappeenranta in Finland.
Handelsbanken Finans had to fight off competition from Nordea
Finans and SEB Finans to win the deal, although the client, Kaukaan
Voima, a Finland energy provider specialising in electricity and
heat, has worked with the Nordic lessor in the past.
Ismo Kruus, vice president of structured lease finance at
Handelsbanken Finans, said: “We have done a number of other biofuel
deals, including a number with municipalities in Sweden.” It
financed a largescale biofuel power plant several years ago with
Finnish company Oy Alholmens Kraft Ab, one of the largest in this
sector.
The new plant just financed by Handelsbanken Finans, which is
due to start operating in spring 2010, will generate heat and
electricity for mills run by UPM, which manufactures wood-based
products, for Lappeenrannan Energia Oy, a city-owned power
company.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalData
