Italy: EIB and Natixis CIB provide €97 million in financing to Libeccio for new state-of-the-art wind farm in Sicily

This article is published in association with European Investment Bank.

• The project supports the construction of a wind farm in Mazara del Vallo (Trapani) with installed capacity of 44.8 MW, while also refinancing existing debt.
• More than 270 jobs will be created during the project implementation phase, and when fully operational, the wind farm will generate enough renewable energy to cover the annual needs of over 56 000 households.
• The operation involves long-term EIB financing of around €42 million and medium- and long-term financing of around €55 million from Natixis CIB.
• The project will contribute to the achievement of the REPowerEU objectives and help promote EU cohesion policy, two of the EIB Group’s eight strategic priorities.
• Natixis CIB acted as sole underwriter, structuring mandated lead arranger (MLA) and bookrunner, agent, commercial facilities lender, green loan coordinator and issuing bank.

The European Investment Bank (EIB) has signed a €97 million finance contract with Natixis Corporate and Investment Banking (Natixis CIB) and Libeccio S.r.l., a special purpose vehicle owned by Fabbrica Energie Rinnovabili Alternative S.r.l. (FERA) and Byom S.r.l. The aim of this financing is to build a new wind farm in Sicily covering the energy needs of over 56 000 Italian households, contributing to the energy transition and to the achievement of the REPowerEU objectives.

Set to be operational by 2026, the new Vento di Vino 2 facility will have installed capacity of 44.8 MW and will be built in Mazara del Vallo in the province of Trapani. In addition to the construction of the new wind farm, the finance contracts signed will help refinance the residual debt of Libeccio, which owns the existing Vento di Vino 1 wind farm, also located in Mazara del Vallo and with installed capacity of 24 MW.

The overall green loan financing was structured on a project finance basis and includes several credit lines totalling around €97 million: €42 million from the EIB and €55 million from Natixis CIB.

The operation backs the decarbonisation goals of the European Green Deal and REPowerEU, for which the EIB has committed to providing an additional €45 billion in financing by 2027. EIB estimates also indicate that over 270 jobs will be created during the implementation phase of the project, delivering major economic benefits in the cohesion region of Sicily.

The project will involve the existence of a brownfield wind farm (Vento di Vino 1 – operational since 2011), which still has a limited remaining feed-in tariff period, and a greenfield wind farm (Vento di Vino 2), which will benefit from the 20-year contracts for difference available under the relevant legislation, having won auction no. 13 of 9 February 2024 under the Renewable Energy Sources decree of 4 July 2019. The financing was structured using residual exposure to merchant risk alongside the contract for difference revenue component.

The main advisors on the operation were Dentons (EIB and Natixis CIB legal aspects), BonelliErede (EIB special counsel), Legance – Avvocati Associati (Libeccio legal aspects), EOS (technical aspects), Marsh (insurance), Deloitte (tax and model auditor) and Arcus Financial Advisors (Libeccio financial advisor).

“Promoting the energy transition and strengthening social and economic cohesion are two of the EIB’s strategic priorities,” said EIB Director for Equity, Growth and Project Finance Operation Alessandro Izzo. “In addition to supporting the production of renewable energy in a rural areas, this operation also fosters job creation and therefore growth and economic development in Sicily.”

Head of Infrastructure Finance Italy at Natixis CIB’s Milan Branch Roberto Massarenti added: “We are proud to have been appointed as sole underwriter by FERA and Byom in this major initiative combining brownfield and greenfield elements and consolidating our leadership in the Italian renewable energy sector. This additional “Green Loan” issued in the Italian market confirms again the efforts of Natixis CIB to sustain the development of renewable energy in a context of ecological transition and attention to the values of the environment and sustainability.”

Board Member of FERA Group and Libeccio Sebastiano Falesi said: “This is another step forward in the Italian energy transition for FERA Group. These 44.8 MW come in addition to the 200 MW the group has activated since 2001. All of this is produced by renewable energy plants, taking advantage of natural resources with positive economic effects supporting the municipalities and regions concerned.”

Byom CEO and Libeccio Chairman Massimiliano Salvi added: “We are proud of this result, representing, on the one hand, the consolidation of the long-term partnership with FERA Group, and on the other, the soundness of our project in line with the objectives of the energy transition and environmental sustainability, as demonstrated by the involvement of premier international financial institutions.”

Background information

The European Investment Bank (EIB) is the long-term lending institution of the European Union owned by its Member States. It finances sound investments that can contribute to EU policy. EIB projects strengthen competitiveness, foster innovation, promote sustainable development and improve social and territorial cohesion while supporting a fair and rapid transition towards climate neutrality. In the past five years, the EIB Group has provided more than €58 billion in financing for projects in Italy.

Natixis Corporate and Investment Banking is a leading global financial institution that provides advisory, investment banking, financing, corporate banking and capital markets services to corporations, financial institutions, financial sponsors and sovereign and supranational organisations worldwide. Its teams of experts in 30 countries advise clients on their strategic development, helping them to grow and transform their businesses, and maximise their positive impact. It is committed to supporting the green transition by aligning its financing balance sheet with a 1.5 °C trajectory by 2050. As part of the Global Financial Services division of BPCE Group, the second-largest banking group in France through the Banque Populaire and Caisse d’Epargne retail networks, Natixis CIB benefits from the group’s financial strength and solid financial ratings (Standard & Poor’s: A+, Moody’s: A1, Fitch: A+, R&I: A+).

Libeccio is owned by FERA Group (81.55%) and Byom (18.45%).

FERA Group is steadfastly committed to generating electricity from renewable sources efficiently, sustainably and in complete harmony with local areas and communities. It has been operating in the renewable energy sector since 2001, selling electricity produced from wind power, biogas and small hydro, with plants in Liguria, Lombardy, Tuscany, Sicily and Sardinia. Launched in 2016, the Ricarica company manages an electrical vehicle charging service with 100 charging points, offering energy at the most competitive prices on the market. In June 2023, the town of Vado Ligure in the province of Savona saw the opening of the first public Ricarica Station in Italy. It is directly connected to the Rocche Bianche wind farm, and features charging points providing up to 350 kW of power for electric trucks and cars. FERA Group operations are fully aligned with nationally and internationally recognised best practice criteria.

Byom is an investment and consulting company operating mainly in the renewable energy and infrastructure market. Formed 15 years ago, the company relies on a team of over 20 professionals with relevant experience and complementary skills in the industrial, energy, infrastructure and consultancy sectors. Byom currently manages more than 250 MWp of renewable energy plants and 39 special purpose vehicles as technical and financial asset manager. In 2019, it began to develop renewable energy plants on its own account and on behalf of third parties, with a total capacity of more than 500 MWp. Since 2021, it has been a leader in the energy autonomy and energy communities sector via its Fusion subsidiary. It oversees the entire value chain from the feasibility study phase to the construction and operation of the plants, with a pipeline of approximately 16 MWp.