Linklaters advises Solas Capital AG on structuring a number of green investments in Europe
Linklaters has advised Solas Capital AG on structuring a number of green investments in Europe, with the frameworks signed to date channelling €100m into energy efficiency and behind-the-meter PV projects and will deliver around 160kt of CO2e savings per year.
Solas Capital AG, Zurich-based energy efficiency finance advisor, advises Solas Sustainable Energy Fund ICAV (SSEF), an SFDR Article 9. This fund provides customized debt financing solutions, which are tailored to the specific requirements of individual ESCOs’ business models. This financing allows ESCOs to offer long-term service contracts with zero up-front capital costs, enhancing the accessibility of energy efficiency and self-consumption PV technology.
Recently, Linklaters advised Solas Capital on a framework agreement with PAUL Tech for asset-based bonds which were subscribed by SSEF to provide a bespoke financing solution. The financing will be channelled into installations of PAUL Tech’s “PAUL Performance” systems, which use AI-based hydraulic balancing to optimise the volume flow of water in heating systems in residential multi-family buildings. The solution improves properties’ energy ratings, delivering an average energy consumption reduction of 20-40%, and helps to ease the pressure of the energy crisis on an individual level, by reducing costs for tenants.
The team advising on this transaction was led by partner Barbara Lauer, alongside managing associate Michael Deane and associates Johann Niller and Kai Erik Ackermann (all Capital Markets in Frankfurt).
The firm also advised Solas Capital on a project bond financing with the German-headquartered energy efficiency specialist ENCORE Efficiency. The investment will be used to finance a wide range of energy savings measures, including industrial-scale heat pumps and ice water cooling systems, for ENCORE's portfolio of industrial and commercial customers. ENCORE Efficiency works together with their multi-national customers to identify efficiency measures that reduce CO2 emissions in industrial processes and simultaneously bring savings in operating costs, without any capital expenditure while being classified as IFRS off-balance sheet for their customers.
The cross-border team was led by Capital Markets partner Barbara Lauer (Frankfurt) and Banking partner Mees Roelofs (Amsterdam), alongside Banking managing associate Jim Koek (Amsterdam), Capital Markets managing associate Michael Deane and associate Kai Erik Ackermann (both Frankfurt), and Banking associate Maxim van Vessem (Amsterdam).
Barbara Lauer commented:
“Solas Capital’s team of energy finance experts demonstrates a true passion for energy efficiency and a commitment to understanding the business models of their ESCO partners. Their expertise encompasses both the technical and the financial elements of the transactions, resulting in solutions which reflect the individual nuances of each transaction.”
Sebastian Carneiro, CEO at Solas Capital AG, said:
“We are confident that Linklaters is a strong partner for delivering excellence in green finance transactions. Their understanding of the sector and of the complex and varied regulatory environments across the EU ensures that ESCOs receive consistently high quality and tailored legal advice. The market-leading legal expertise provided by Linklaters also contributes to ensuring that we deliver frameworks that are secure and well-structured for our investors.”
These successful transactions will play a crucial role in the EU meeting its 2030 climate goals, by channelling institutional finance to high impact projects that deliver significant and immediate reductions in carbon emissions. Linklaters will be advising Solas Capital more on similar transactions in the near future.
