Menu Sectors
Project Finance Copying and distributing are prohibited without permission of the publisher

Rijnmond IPP: InterGen's Dutch first

01 December 2002

Read more: [rijnmond] [IPP] [power] [project finance] [intergen]

North-west Europe has witnessed financial close of its first hybrid merchant power deal in years, and its first IPP since EU electricity directives were introduced in 1996. The Rijnmond power plant project signed on 14 November 2002 with a total financing of Eu622 million ($633.5 million). This comprised a BNP Paribas/ SG-led four-tranche debt facility of Eu461 million and a Eu161 million one-year InterGen equity bridge loan.

Rijnmond has an interesting financial structure built out around market price risk, using a hybrid structure, forward-looking ratios and partial cash sweeps. Because lenders are generally wary of taking on full merchant risk, the power purchase agreement (PPA) of 15 years is a comforting mix of three five-year blocks mixing fully contracted and market-linked revenues.

The contract structure is reminiscent of InterGen's US borrowing base approach, which matches leverage and debt to the proportion of contracted revenues and predicted spot prices. For...


Latest Deals Database updates

Reading Civic Centre Update date 17/04/2014
Sector Social Infrastructure/PPP/P3/PFI > Social Housing
Country Europe - EU > UK
Total Debt Loan Amount
Status Preferred bidder
El Limon-Guajes Gold Update date 17/04/2014
Sector Mining/Metals > Metals
Country Latin America > Mexico
Total Debt Loan Amount
Status Finance mandated
Highway 407 East (Phase 2) Update date 17/04/2014
Sector Transport > Highway maintenance
Country North America > USA
Total Debt Loan Amount
Status RFP
Change font size: Switch to default font size Switch to medium font size Switch to large font size