Baltic Power with award for European Deal of The Year of the year 2023

Baltic Power, a joint project of the ORLEN Group and Northland Power, has been recognized and honored with the prestigious award for the best European financial transaction of the year 2023. This unique award highlights the importance of Poland's first offshore wind farm in shaping the future of renewable energy sources in the region. The award statuette was handed over to Baltic Power Managememt Board representatives Jarosław Broda and Jens Poulsen during a gala in London.

The PFI (Project Finance International) award is considered one of the most important project finance awards in the world. Awarded by respected financial institutions, it recognizes projects characterized by innovation, financial complexity and significant impact on the development of the sector in which they are implemented. The prestige of the award stems from its global reach and rigorous selection process, making it one of the most important in the market for recognizing its winners. As the PFI jury acknowledged in its justification for the award: "The Polish-Canadian duo of Orlen and Northland Power was the only team to close Polish offshore wind financing on schedule, securing a €4.4bn non-recourse project financing package in September from a club of 25 lenders."

The fact that we were the first and only in Poland to reach the key project milestones of Financial Close and Final Investment Decision is a historic moment not only for our company, but for the entire Polish energy sector. Obtaining financing of about EUR 4.4 billion from 25 international financial institutions demonstrates confidence in the credibility of our business model and the level of preparation of our project," explains Jarosław Broda, CEO of Baltic Power.

The total project budget is estimated at around €4.73 billion and includes capital expenditures with insurance of around €4.05 billion, as well as financing costs and additional reserve. The project will be financed under the Project Finance formula - in September, Baltic Power's shareholders signed loan agreements for a total of about €4.4 billion with 25 Polish and international financial institutions in this regard. This is the largest financing raised for a single investment in Poland's history and one of the largest transactions of its kind in the offshore wind area in Europe.

The repayment of the credit facility will be funded through the future financial surpluses generated by the project. The project will be financed under the Project Finance framework, which is well-suited for projects with significant capital requirements and extended timelines to achieve full operational capacity. The syndicate supporting the project comprises 25 financial institutions, encompassing both Polish and international commercial banks, export credit agencies (ECAs), and multilateral institutions, including the European Investment Bank (EIB), European Bank for Reconstruction and Development (EBRD), Euler Hermes, Export and Investment Fund of Denmark, and Export Development Canada. The project financing accounts for 80% of the expected total capital costs, with the project partners contributing the remaining capital.

With a stable financial foundation and international experience, we are the best proof of how to successfully implement large-scale offshore wind projects, which are one of the pillars of Poland's ongoing energy transition . Our goal, which we have consistently pursued, is to provide clean energy to more than 1.5 million households as early as 2026," stressed Jens Poulsem, Board Member of Baltic Power.

Baltic Power is a project of key importance to the strategic directions of the project's shareholders, Northland Power, which is developing its international assets, and the ORLEN Group, whose strategy is to achieve 9 GW of installed renewable energy capacity by 2030. The farm, which will be built about 23 kilometers offshore near Leba and Choczew, will consist of 76 wind turbines with a capacity of 15 MW each. The project will contribute to a significant reduction in CO2 emissions, promoting sustainable development and energy transition in Poland. Ultimately, the Baltic Power farm will be able to provide 3% of the energy needs of the national power system.

The Baltic Power project not only represents a breakthrough in the Polish renewable energy sector, but also makes a significant contribution to global sustainability efforts. It is the world's first offshore wind project to use low-carbon steel for its turbine towers. The award in the Deal of The Year category of Project Finance International underscores its uniqueness and confirms that Poland can be a leader in renewable energy on the international stage.