SH advises Welsh Power in Nevis Power Santander deal
13 December 2011
International law firm Stephenson Harwood has advised Welsh Power Group Limited on the sale of 50% of its biomass power plant project company, Nevis Power Limited ("Nevis"), to a subsidiary of Banco Santander S.A. Welsh Power and Santander will jointly take the project to financial close.
Nevis is located at Newport docks in South Wales and holds full planning permission for its ten acre brownfield site. It will be run using renewable fuel and will be capable of supplying electricity to around 50,000 homes in the Newport area when built. Welsh Power develops all of its projects as an owner-operator, this means that construction of Nevis can commence as soon as financial close is achieved.
Nevis is a quality "green" investment which will be marketed with the option of project finance debt, enabling investors to commence building immediately. Welsh Power and Santander believe this approach will deliver the broadest interest in Nevis from all types of investors.
Alastair Fraser, Chief Executive Officer of Welsh Power, said: "Having a company of the status and quality of Santander choosing to partner Welsh Power on the development of Nevis is excellent news, and is the first major advance in our business since we completed the buyout of the Welsh Power Group Limited on 30 June 2011."
The Stephenson Harwood team was led by corporate partner Ben Mercer, with assistance from Charlotte Laing.