“Restructuring of bank debt for wind energy investments” Seminar, 18 October 2016, Rondo ONZ 1, 12th floor, Warsaw
The deepening crisis on the green certificates market as well as regulatory changes (the amendment to the RES Act and the so-called Distance Act) increased credit default risk of the wind energy industry. Potential debt restructuring options will be discussed by participants of a seminar organised by PWEA together with PwC , DNV GL and SSW experts.
Within the past four years the value of green certificates decreased sevenfold, directly translating into lower revenues of RES installations. The deepening crisis on the green certificates market increases investors’ credit default risk. Banks alarm that new tax burden imposed on wind farms by the so-called Distance Act may soon cause wind projects to fail to generate sufficient cash flow to service the debt (http://energetyka.wnp.pl/rosnie-ryzyko-naruszania-umow-kredytowych-przez-energetyke-wiatrowa,281796_1_0_0.html).
Furthermore, low green certificate prices causes the value of RES assets to decrease rapidly. For majority of wind investments their valuation is below the SPV debt level.
All of the above conditions entail the need for restructuring of the existing credit agreements. How will banks behave? What may be required from borrowers? What are the potential credit restructuring variants? What savings opportunities are there? All the questions will be answered by PwC, DNV GL and SSW experts invited by PWEA.