Alexa Capital acted as exclusive financial advisor to CWP on a capital raise to build 2 GW of renewables in Southeast Europe with Mercuria Energy Trading. CWP is the leading independent renewable energy developer in Southeast Europe & Australia, and has longstanding relationships in the Southeastern European region. Mercuria is one of the world’s largest independent energy traders with more than $100 billion of revenue. The CWP European project portfolio has been in active development since 2018 and consists of large-scale wind, solar and battery storage projects across Bulgaria, Serbia, Romania, and Ukraine. Mercuria’s investment in CWP Europe will serve to support the company’s efforts to accelerate decarbonisation in the four carbon-intensive countries and will allow CWP to realise its €2 billon investment plan over the next few years.
ALEXA CAPITAL’S ROLE
Alexa Capital managed and executed the fundraising process structured as a focused market engagement targeting qualified potential partners with capabilities to support the what is arguably the largest renewable development platform in Southeast Europe. Alexa Capital advised on deal structuring & negotiation, plus all elements of market engagement preparation including articulation and refinement of the business plan, engagement with institutional and strategic investors and detailed investor disclosure management. The transaction highlights the value of Alexa Capital’s power markets expertise, abilities to articulate investment fundamentals, execution capabilities maintaining competitive alternatives throughout the process and extensive investor network.
The joint venture aims to provide competitively priced green energy to the region and accelerate the energy transition in Southeast Europe, where historical wholesale power prices have been at 25-30% premiums to Western Europe due to reliance on carbon-intensive coal generation. Green power solutions in the region will support more capital flows into Southeastern Europe’s industrial economies. CWP Europe’s CEO was quoted: “We see a tremendous opportunity in these markets, where a massive amount of expensive and polluting coal needs to be replaced with renewables as quickly as possible – this is the only way to achieve decarbonisation targets, keep power prices in check in the long run, and maintain the region’s economic competitiveness. Partnering with Mercuria will allow us to supercharge our already ambitious plan”.