ABO Energy secures KfW financing for substations
Published by Jessica Casey,
Editor
Energy Global,
Over the next two years, ABO Energy plans to build 11 substations in Germany to connect new wind, solar, and battery parks to the grid. In the past, the the company has sold the substations it has built, together with the connected energy parks, on a pro rata basis to their operators. For strategic reasons, ABO Energy will in future take substations in Germany into its own portfolio.
ABO Energy has secured financing for the first 11 substations from the ‘Climate Protection campaign for Companies’ programme run by the state-owned Kreditanstalt für Wiederaufbau (KfW). The substations are scheduled to be connected to the grid by the end of 2027.
The syndicated loan of €45 million was arranged by IKB Deutsche Industriebank AG as bookrunner and syndicate leader. Frankfurter Sparkasse and Taunus Sparkasse also participated in the syndicate. The first tranche was disbursed week beginning 20 October 2025. Noerr Partnerschaftsgesellschaft advised ABO Energy on the conclusion of the syndicated loan agreement, while Clifford Chance acted as advisor to the banks. In the coming years, ABO Energy will have the opportunity to take out additional KfW-subsidised loans to finance further substations.
The investment volume for the 11 substations amounts to around €71 million.
“Expanding our business model to include the operation of substations generates early and predictable cash flows,” said Alexander Reinicke, Managing Director responsible for corporate finance. “At the same time, the loan agreement concluded under the KfW programme strengthens our corporate financing.”
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Read the article online at: https://www.energyglobal.com/other-renewables/24102025/abo-energy-secures-kfw-financing-for-substations/
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