Chatham Partners advises Berenberg Green Energy (Junior) Debt Funds

Led by its counsel Marco Weibrecht, Chatham Partners has advised private bank Berenberg and the Berenberg Green Energy Debts Funds on the junior debt financing for a 137.5 MW (grid connection capacity) and 308.0 MWh (storage capacity) Battery Energy Storage System (BESS) to be constructed in Alfeld, Lower Saxony. The 2h stand-alone battery storage system is designed to capture revenue potentials beyond the capabilities of 1h battery storage systems.

The project will be structured by the Danish BESS investor Obton on behalf of one of its dedicated battery storage funds and Obton will manage the project in the long-term, leveraging its buy-and-hold strategy as an Independent Power Producer.

The subordinated financing is provided by several Berenberg Green Energy Debt funds, with Berenberg serving as the investment advisor to the funds, lender, agent and account bank. The financing is particularly remarkable due to its size and the complexity, acknowledging the potential inherent volatility of uncontracted BESS revenue streams, while reducing credit risks at the same time, providing value for Sponsors and lenders alike.

The team of Chatham Partners included: Marco Weibrecht, Torge Humsi and Louica Unger.