Clifford Chance provided comprehensive advice to bayernets GmbH, a transmission system operator, on the planning and financing of the so-called MONACO pipeline.
The transmission pipeline for natural gas runs from the German-Austrian border in Burghausen to Finsing near Munich. Commissioning of the pipeline is scheduled for 2018. The MONACO pipeline will enable natural gas transmission from and to the major natural gas reservoirs in Austria which are connected to the bayernets network.
The plan approval procedure preceding construction and operation of MONACO lasted about two years during which the admissibility of the project was comprehensively examined and verified by the local government of the Oberbayern region. Environmental impact assessments were carried out including disclosure of all environmental ramifications. Affected citizens as well as specialist authorities were given the opportunity to discuss their concerns and interests with bayernets and Clifford Chance. No actions were filed against the planning approval issued subsequently by the local government of the Oberbayern region.
MONACO pipeline and other investment projects of bayernets will be realised with a corporate financing with the total amount of EUR 347 million consisting of a debt financing and a capital increase. The volume of the debt financing amounts to approximately EUR 208 million. A financing share of EUR 30 million will be provided by European Investment Bank. The majority of the funding (approximately EUR 178 million) will be provided by a banking consortium of Bayerische Landesbank, Commerzbank AG, Landesbank Baden-Württemberg and SEB AG.
Furthermore, bayernets will raise approximately EUR 139 million by way of a capital increase. In addition to previously sole shareholder Bayerngas GmbH, who will now hold 59.1% of the shares in bayernets GmbH, Stadt347 werke München GmbH have acquired 32.4% and Stadtwerke Augsburg Holding GmbH 8.5%.
bayernets GmbH is based in Munich and one of the major transmission system operators for natural gas in Germany managing a network area of 32,000 square kilometres and an average cable diametre of DN 500.
The Clifford Chance team consisted of partner Dr. Mathias Elspaß (Energy & Infrastructure; lead Planning Law) and partner Dr. Florian Mahler (Banking & Capital Markets; lead Finance), senior associate Mira Heinrich (Energy & Infrastructure) and transaction lawyer Salome Jibuti (Banking & Capital Markets) – all Düsseldorf.
Clifford Chance members from the Energy & Infrastructure and Finance teams recently also advised the electric power plant of the city of Zurich and Fontavis AG on their joining Trianel Windpark Borkum II project as well as Global Infrastructure Partners on an investment in Offshore-Windpark Gode Wind 1.
