According to the firm, this is a landmark transaction in a number of ways
![DLA Piper coaches Aquila Clean Energy APAC, solar farm on Westpac NZ deal](https://cdn-res.keymedia.com/cdn-cgi/image/f=auto/https://cdn-res.keymedia.com/cms/images/us/071/0311_638563728332167432.jpg)
DLA Piper has assisted Aquila Clean Energy APAC and Far North Solar Farm (FNSF) with the closure of a portfolio financing deal with Westpac New Zealand Limited.
According to the firm, the financing is structured on a fully merchant and non-recourse basis. It is the first transaction of its kind by a foreign investor in New Zealand, and represents the inaugural offshore investment in solar farms in the country.
The portfolio comprises four solar farms with a combined capacity of approximately 180MW. The Pukenui Solar Farm is scheduled to be commissioned in 2025 and continues to be open to power purchase contract opportunities.
“Given the project's structure and merchant risks, there was an increased emphasis on certain due diligence aspects”, DLA Piper partner Rachel Brown said.
She pointed to the efficiencies coming from portfolio financing, which included cost synergies and streamlined resource allocation for construction contractors. The portfolio financing also eliminates the reliance on an offtake agreement to reach financial close, mitigating several risks for sponsors. Included in the structure are provisions for increased gearing if power purchase agreements (PPAs) or offtakes are incorporated.
Brown worked on the deal with co-leading partners Martin Thomson and Pavanie Edirisuriya. They helped to obtain the required consents for the portfolio, such as those under the Overseas Investment Act.
The transaction was completed in May.
Teams from Ashurst, Anderson Lloyd and Tompkins Wake also provided legal advice on the deal. The lead financial advisor was Mafic Partners.