Freshfields advises lenders on EIFO-backed SuedLink grid construction project

Global law firm Freshfields has advised a banking consortium of HSBC, CACIB and ING on the EIFO-backed financing of the Suedlink grid construction project.

EnBW Energie Baden-Württemberg AG has taken out a €500 million long-term loan to finance SuedLink, one of Germany's largest energy transition infrastructure projects currently under construction. SuedLink is a high-voltage direct-current (HVDC) connection of approximately 700 kilometres linking northern Germany with Bavaria and Baden-Württemberg. 

The southern section is being implemented by EnBW's subsidiary TransnetBW jointly with TenneT Germany, with completion scheduled for end of 2028. The loan has a tenor of 18 years and is guaranteed by the Danish export credit agency EIFO, covering 95 percent of the outstanding loan amount including interest. The transaction marks the first ECA financing to be implemented for investments in the German electricity grid. The structure allows for flexible drawdowns tied to construction progress, supporting needs-based financing.

The Freshfields team was led by energy and infrastructure finance Partner Andreas Ruthemeyer, who consistently advises on a broad range of ECA covered financings in the energy sector, and further consisted of Principal Associate Laura Korndörfer (both Frankfurt) and Associate Serra Onal (Berlin, all Finance) as well as Partner Stefan Schröder and Associate Denise Leinders (both Regulatory, Düsseldorf).