Our Investment Banking team acted as a sell-side advisor to Hungary-based ARAGO and Croatia-based A.M.S.-Biomasa in the sale of A&A Bioenergy Viro, a 3MWe biomass CHP plant in Croatia, to PEARL Infrastructure Capital, a specialized infrastructure fund backed by Edmond de Rotschild PE, EIB and other strategic anchor investors.
A&A Bioenergy Viro is a 3 MWe woodchip-fired CHP plant located in Virovitica, Croatia. The plant started commercial operations in December 2019 under a 14-year PPA with state-owned market operator HROTE. The PPA envisages a CPI-linked feed-in tariff of 196 EUR/MWh in 2021. 95% of feedstock is secured through a 14-year contract with Hrvatske šume, whereas the remainder is supplied by A.M.S.-Biomasa. Đuro Đaković TEP, the regional leader in the segment of thermal energy solutions with a 100-year tradition based in Slavonski Brod, is both EPC and O&M provider (under a 14-year contract). The plant supplies electricity to 3,008 households and enables avoiding 27,000 tonnes of CO2 per annum.
PEARL Infrastructure Capital was founded by an expert team of environmental sector leaders who joined forces with the Edmond de Rothschild Private Equity platform to create a private equity fund dedicated to energy transitions, the circular economy, and environmental impacts. The fund’s first closing took place in May 2019. In March 2020, PEARL completed its final closing with total commitment in the fund reaching EUR 280m, significantly above its EUR 200m objective. The acquisition of A&A Bioenergy Viro is PEARL’s 3rd acquisition of a biomass CHP plant in Croatia which brought their portfolio to the level of 16.6 MW, thus being the largest portfolio and key player on the biomass CHP market in Croatia.