SYNOPSIS

• In July 2015, Alexa Capital advised BayWa on structuring and recapitalisation of a £120m UK solar portfolio
• Alexa implemented an innovative credit structure and secured advantageous, long term capital from Munich Re
• A 20 year corporate PPA with McDonalds restaurants allowed access to the lowest possible cost of capital over the life of the assets

ALEXA CAPITAL’S ROLE

• As well as capital from Munich Re, Alexa sourced and negotiated an innovative corporate PPA with McDonalds
• The agreement covered purchase of 100% of the c.100 GWh p.a. of energy produced
• Agreement was “sleeved” with RWE/nPower covering renewable certificates, balancing risk etc. and allowing McDonalds to purchase all of the renewable power without having to match supply with demand from its premises

WHAT THE TRANSACTION MEANS FOR THE ENERGY SECTOR

• Corporate PPA’s are one of the key ways that the wind and solar sectors will continue to grow in a post subsidy world
• Mobilising low cost financing is crucial for large scale clean energy infrastructure and increasingly, pension and insurance funds will play a critical role