Project Finance

If you have big plans, you need reliable partners. Financially strong and with a solid understanding of the market: LBBW arranges and finances complex projects.

Children running in the fields in front of windmills

Do you have big plans in mind? Do you want to build a solar park or a wind park? Or invest in infrastructure projects like new railway lines or an airport renovation? Do you bid on PPP projects that involve working with the public sector to upgrade schools or hospitals? If you have ambitious projects, we have the suitable solution: LBBW executes capital-intensive projects with structured project finance.

With project finance, LBBW assumes some of the risk: Invested money plus interest is repaid primarily from future project cash flow. Lenders need to be convinced that the investment will be a successful one, which is why LBBW carries out extensive risk analyses. Agreements are also drafted such that the project risks are distributed adequately among the parties involved.

What do we finance?

Portfolio of LBBW project financing

Source: LBBW

More than just a lender

Our teams of experts in Stuttgart, Leipzig, London and New York work with you to structure and arrange your project finance solutions. Our specialists have extensive expertise about the particular challenges involved in advancing large-scale projects. They also develop comprehensive finance packages that take into account not only financing maturities and risks, but also interest rate hedging, cash management solutions, promotional funding and the involvement of further bank partners in a syndicate. We also work closely with colleagues from other departments on a regular basis on project finance matters.

5.7 bn euros is the value of the LBBW project financing portfolio (12/2019)

Where do we finance projects?

Portfolio of LBBW project finance

Source: LBBW

Our pronounced expertise, financial prowess, speed and reliability make us a valued financing partner for a number of large-scale projects.

We see the bigger picture. Real asset finance like this is not limited to project finance alone. Corporate customers and financial services providers rely on our long track record of expertise in commercial real estate and aircraft finance.

Syndication means that you get your finance from a single source as you would expect, in this case from LBBW. Let us care about the rest. We form a syndicate via our established syndication platform and, as the lead arranger, we are always available as your point of contact for all questions relating to your finance. The fact that we have managed syndicated finance deals with a volume of around EUR 9 billion to date speaks for itself.

Large Projects

With the financing of the A16, LBBW is committed to the expansion of important European transport routes. As Mandated Lead Arranger, LBBW is providing about 130 Million Euro of the total debt capital of about 900 Million Euro.

The 32-kilometer-long "Afsluitdijk" (Enclosure Dam), which protects The Netherlands against floods from the North Sea, will be reinforced. Total financing volume comes to approximately 830 Million Euro. LBBW acts as a Mandated Lead Arranger.

123,000 glinting blue solar panels produce enough electricity to supply 7,500 households in Delfzijl, the Netherlands. Before the power flowed, 40 Million Euro were invested, three quarters of which as project finance.

From Borkum, 45 kilometers north: 66 wind turbines from the Merkur offshore wind farm are turning in the North Sea and producing electricity. The nominal output is 396 MW - equivalent to the electricity requirements of 500,000 households. LBBW is participating in the refinancing of Merkur.

LBBW not only financed the construction with 18 Million Euro, it also accompanies for 18 years the operation of the Bärfang wind farm in the State of Brandenburg. The eight wind turbines near Herzberg could supply 10,000 households with electricity at around 34,000 megawatt hours per year.

Along with two other German banks LBBW provides the financing for the construction of a highly secure and highly available cloud data center for T-System International as operator.

Project financing with LBBW: View of a model of the A16 motorway near Rotterdam

Project financing with LBBW: One of the largest solar panel parks of the Netherlands in Delfzijl.

Wind turbine of a wind farm in the North Sea

Project financing with LBBW: View from above of the Bärfang wind farm in Brandenburg

Project financing with LBBW: Cloud data centre for T-Systems International

A group of sheep in front of a solar plant

One of the biggest solar parks in the Netherlands

Google's data center in Eemshaven is powered by wind and solar energy. This solar power comes from neighboring Delfzijl, where Wirsol built a solar park, nearly as big as Munich’s famous “Oktoberfest”. EUR 40 million was invested, three quarters of which originated from project finance arranged by LBBW.

Find out more

Have you already seen our LinkedIn page?

People and technology: The right hand is holding a mobile phone, the left is on a laptop

Do you want to learn more about project finance at LBBW and be informed about current developments? Then we would be pleased if you followed our LinkedIn page Real Estate I Renewables I [Digital] Infrastructure.

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