Watson Farley & Williams (“WFW”) has advised UniCredit on the approximately €39 million refinancing of seven Solar Investment Group BV (“SIG BV”) owned special purpose vehicles (SPVs), collectively holding a photovoltaic portfolio in Italy of about 16.5 MW.

This transaction has been strategically structured by UniCredit and WFW to mitigate the effect of the implementation of the s.c. “Spalma Incentivi“ Decree in the Italian photovoltaic market. The decree forces PV plant owners to take either a cut on the rate or duration of the feed-in tariff for solar energy they provide, even on those installed and financed before the decree was passed.

To this end, the transaction involved the entering into of a new multi-borrower facility agreement with UniCredit to reimburse the outstanding original debt of each SPV company through an innovative cross-collateralization financial structure. The purpose of the new structure is to consolidate the SPVs’ financial position without adversely affecting the related level of debt due to the review of the incentive system, improving the portfolio risk management profile and ensuring sustainable financial parameters thanks to intercompany synergies.

WFW also advised on the drafting of the release phase of the original financial documentation for UniCredit as well as on the legal due diligence in relation to the bankability aspects of (i) the new SPVs’ corporate structure inside the group (including the related Dutch aspects whose legal assistance at shareholder level has been carried out by Stek, and (ii) the SPVs’ debt remodulation, following the effects caused by the implementation of the s.c. “Spalma Incentivi“ Decree.

The WFW Italy team was led by finance partner Pierpaolo Mastromarini. He was assisted by associates Michele Arruzzolo for project finance aspects as project manager, Ginevra Biadico for administrative law aspects and Elisa Chiaro who advised on corporate law.