In May 2018, the first new energy project in Europe, jointly developed by Shanghai Electric Power Co., Ltd. (Shanghai Electric Power) and Malta Government, namely Mozura Wind Power Project in Montenegro (the project), has successfully completed financing. King& Wood Mallesons advised Shanghai Electric Power by providing comprehensive legal services in banking finance, regarding the financing by the Bank-led consortium ("Syndicate") on the project. The syndications provided €69,500,000 periodic loans ("syndicated loans") to a wholly-owned subsidiary ("borrower") established in Montenegro, which was founded by China Electric Investment and integration Finance Leasing Limited.
In this transaction, the borrower will use syndicated loans to purchase leased assets such as wind power equipment, and to lease the leased assets under this project as a lessor to the lessee, Shanghai Electric Power's subsidiary ("the project Company") established in Montenegro. With a complex structure of the financing transaction, this project contributes substantially to Malta's steady power supply and rapid economic growth, and creates more replicable business models and management options for future development of new energy projects in other countries. Additionally, with a stable supply of electricity for the surrounding area of Mozura, this project has great significance for Montenegro to fulfill its commitment of providing clean energy to enter EU, and lay the groundwork for joint development of other energy projects in the Montenegrin region. Corresponding the "One belt and road" initiative, Shanghai Electric Power, together with Malta Government to "Go out", will help to drive China's equipment, standards, services and other related industries to the overseas market.
This project was led by Partner Lv Yinghao, and supported by KWM M&A and Engineering teams.
