Watson, Farley & Williams (“WFW”), a leading international law firm, is pleased to announce that it has advised the borrower Escal UGS S.L (“Escal”) on the €1.4 billion financing of the Castor energy storage project in Spain.

Escal owns the Castor underground gas storage project, which will provide storage for 30% of Spain’s daily gas consumption. The project is being developed by Escal, which is owned by the Spanish construction company ACS Group and the Canadian oil and gas company Dundee Energy, and promoted by the Spanish Ministry of Industry.

WFW advised Escal on the financing received from Luxembourg-based company Watercraft Capital S.A. (“Watercraft”). Watercraft provided Escal with the proceeds from the issuance of €1.4 billion in senior secured Euro bonds supported by a €200 million liquidity line from the European Investment Bank (“EIB”) under the Project Bond Credit Enhancement Initiative.

Partner Rodrigo Berasategui led the team and was supported by Juan Vicente Barquilla.

Clifford Chance acted for the EIB and Allen & Overy advised Banco Santander as global coordinator.

Rodrigo Berasategui, project and structured finance partner at WFW in Madrid, said: “We are delighted to have worked with Escal on the complex and innovative financing of such a key infrastructure project in Europe. It is particularly pleasing to use our considerable project finance expertise and attract the support of investors in challenging economic times.”