A financing agreement between BW Ideol, the world leader in floating wind turbines, and ADEME Investissement, a French public company that finances innovative infrastructure projects. This €40 million agreement is intended to support BW Ideol’s project development activities.
The creation of the subsidiary BW Ideol Projects Company or DevCo
The agreement provides for the creation of a subsidiary for all of BW Ideol’s co-development activities, called BW Ideol Projects Company or DevCo. ADEME Investissement will invest a total of €40 million in equity in DevCo through capital increases, including €16.7 million paid at the first closing by ADEME Investissement, and subsequent capital injections based on project financing calls with equal co-financing between BW Ideol and ADEME Investissement.
Through this financing agreement, BW Ideol transfers part of its capital to ADEME Investissement.
After the first closing, BW Ideol will own 76.6% of DevCo, which represents a post-money valuation of DevCo of approximately 72 million Euros. ADEME Investissement will increase its participation over time as new projects mature and are financed. Under the agreement, BW Ideol will be responsible for managing DevCo through a service agreement. At the end of all funding calls, ADEME Investissement and BW Ideol will each have invested €40 million in DevCo.
ADEME Investissement has obtained a two-month exclusivity period to finalize the transaction with BW Ideol. The objective is to close the First Closing before the end of the second quarter of 2023, subject to final negotiations and approval by the respective decision-making bodies of BW Ideol and ADEME Investissement.
BW Ideol retains its other business activities and assets
Despite the sale of part of its capital to ADEME Investissement, BW Ideol will continue to hold all of its other activities and commercial assets. This includes its portfolio of technologies and intellectual property, its EPCI float business line as well as the exclusivity with the Port of Ardersier in Scotland for a float production line. BW Ideol also retains the Floatgen demonstrator, EolMed project ownership and all teams including engineering, business development, project execution, supply chain, legal, innovation and finance.
This agreement allows the financing of BW Ideol without diluting existing shareholders
In addition to the transaction with ADEME Investissement, BW Ideol has signed a €12 million shareholder loan with BW Offshore and Noria. With these two transactions, the company expects to be fully funded to execute its business plan for the next 12 months, without diluting existing shareholders.
Finally, Paul de la Guérivière, CEO of BW Ideol, said that these transactions are important for the company’s continued growth in the renewable energy sector.
