Norton Rose Fulbright advises lenders on approx. PLN 2.3 billion (EUR 546 million) financing of 562 MW CCGT power plant in Poland

Global law firm Norton Rose Fulbright has advised a consortium of Polish financial institutions, comprising Alior Bank, Bank Gospodarstwa Krajowego, Bank Polska Kasa Opieki, PKO Bank Polski, Santander Bank Polska and UniCredit on approx. PLN 2.3 billion (EUR 546 million) financing construction of 562 MW combined cycle gas turbine (CCGT) power plant in Turek, Poland.

The finance package comprises a long-term loan of PLN 2.155 billion, a revolving VAT facility of up to PLN 100 million and a working capital facility of as much as PLN 40 million, with the option to increase it up to PLN 500 million. Bank Polska Kasa Opieki acts as the facility agent, security agent and ECA agent.

The CCGT power plant is being developed by PAK CCGT, a company within the ZE PAK Group, on the site of the former coal-fired power station in Turek, which has now been decommissioned. The 562 MW ZE PAK CCGT unit is a modern power generation facility capable of producing nearly 5 TWh of electricity annually, providing a stable and fully dispatchable source of electricity that significantly enhances the country's available generation capacity. Thanks to its operational flexibility, the plant will support the reliable and efficient operation of the national power system while enabling greater integration of renewable energy sources. Construction commenced in December 2023 and is expected to be commissioned in 2027.

A Warsaw-based Norton Rose Fulbright team negotiated the facility agreement, security documents and hedging documents and conducted legal due diligence of the project.

The team was led by energy and project finance partner Tomasz Rogalski, head of the energy and infrastructure practice in Warsaw, together with senior associate Karolina Lepakiewicz, and included counsel Igor Kondratowicz-Laderski, counsel Wojciech Janik, senior associates Katarzyna Berestecka and Karolina Majcher, associates Daniel Książek, Antoni Krzyżanowski Michał Rutkowski, Jakub Wiatrzyk and Kacper Wojtacha, (finance aspects of the transaction), counsel Krzysztof Gorzelak, associates Natalia Rybak and Antoni Krzyżanowski (hedging aspects of the transaction) as well as counsel Cezary Zawiślak, associates Bartosz Odziemkowski, Martyna Orłowska, Aleksandra Szostak Nina Strzelczyk, Mikołaj Wołczyński and lawyer Michał Odolczyk (legal due diligence and regulatory aspects of the transaction).

Milan-based partner Arturo Sferruzza, associate Mattia Musella and paralegal Regan Eastwood advised in relation to English law.

Tomasz Rogalski commented:

"We are proud to have advised on this landmark gas-fired power plant financing, which not only strengthens the ZE PAK Group's portfolio but also reinforces Poland's energy security, supporting a reliable and resilient national electricity supply. The transaction was highly complex, with multiple types of facilities provided by a consortium of six lenders and secured by the Polish Export Credit Agency (KUKE), and we are delighted to have helped bring it to a successful close."