R.Power raises €150 million investment and welcomes the Three Seas Initiative Investment Fund as a new investor

The Three Seas Initiative Investment Fund S.A. SICAV-RAIF (‘3SIIF’, ‘the Fund’) will invest €150 million in R.POWER SA (‘R.Power’ or ‘the Company’) and acquire a minority stake in the Company. Following the investment, the founding shareholders of R.Power will retain a majority stake and continue to lead the Company, and the Fund retains an option to increase its investment further to €250 million (in total). The investment is subject to merger control approval.

R.Power is a leading independent power producer (‘IPP’) active in solar PV and battery storage. The company is headquartered in Warsaw and has operations across Poland, Romania, Germany, Italy, Spain and Portugal.

3SIIF is a dedicated commercial fund targeting infrastructure investments in Central and Eastern Europe (‘CEE’). The Fund invests in energy, transport and digital infrastructure in CEE. Amber Infrastructure is the exclusive investment adviser to 3SIIF. Amber Infrastructure is a UK based specialist international investment manager with over €5.5 billion in funds under management.

The Fund’s investment will support the Company’s long-term growth strategy, with a plan to achieve 1 GWp operating solar portfolio within the next two years across EU markets. At present, the Company is operating and constructing more than 500 MWp of utility-scale solar PV plants in Poland and Portugal.

R.Power will continue investing in Quanta Energy (R.Power’s commercial and industrial solar PV business line) and Nomad Electric (R.Power’s EPC, operations and maintenance business line). R.Power is majority shareholder of both Quanta Energy and Nomad Electric.

Przemek Pięta, Co-Founder and CEO of R.Power S.A. commented: “We are delighted to have 3SIIF and Amber Infrastructure join us in expanding our international business. This investment validates R.Power’s track-record in renewables and will play a significant role in our strategy to become a leading European renewable energy IPP and contribute actively to the EU energy independence. The raised funds will help us accelerate growth of the company in Poland as well as other markets in which we operate such as Romania, Germany, Italy, Spain and Portugal”.

Tomasz Sęk, Co-Founder and COO of R.Power S.A. said: “Today’s announcement marks the next exciting step towards executing our strategy of expanding renewable energy across Europe. R.Power’s international pipeline has already exceeded 2GWp in development with over 50 employees outside Poland. We are excited about our partnership with 3SIIF to grow our existing footprint and capabilities further”.

Maciej Tarasiuk, Senior Investment Director at Amber Infrastructure, noted: “R.Power has been a pioneer in supporting decarbonisation of the Polish energy system through development of solar energy. Over the last decade, a strong and dedicated team, has continued to excel in development, construction and management of photovoltaic farms. As the exclusive investment adviser to 3SIIF, we are delighted to join the R.Power team on the journey towards decarbonised energy production in the CEE region and wider Europe. 3SIIF fully supports R.Power’s ambitious development plan that will strengthen its position as a leading international IPP across photovoltaic and ancillary technologies”.

The investment in R.Power represents 3SIIF’s fifth investment and is complimentary to its existing energy investments. Since March 2020, the Fund has made a number of investments: Cargounit, Poland’s largest locomotive leasing business, Enery, a renewable generation company with operations across Central and Eastern Europe; Greenergy, a data centre platform and BMF Port Burgas, a major port operator in Bulgaria.

R.Power was advised by Morgan Stanley & Co. International plc and mBank (financial advisors), Clifford Chance (legal), ARUP (technical adviser), EY (financial and tax) and Baringa (commercial).

IMPORTANT NOTICE

For the purpose of investors in the EU, this announcement qualifies as a marketing communication in accordance with the Regulation (EU) 2019/1156 of the European Parliament and of the Council of 20 June 2019 on facilitating cross-border distribution of collective investment undertakings and the ESMA Guidelines on marketing communications under the Regulation on cross-border distribution of funds.

This announcement does not constitute or form part of, and should not be construed as, an offer, invitation or inducement or recommendation to make an investment in 3SIIF nor shall it or any part of it form the basis of, or be relied upon in connection with, any contract or commitment whatsoever.

3SIIF is suitable only for “professional investors” (within the meaning of the EU Directive 2014/65/EU on markets in financial instruments) domiciled or with a registered office in jurisdictions where 3SIIF is authorised for marketing. The full details of the investment features, risks and costs related to 3SIIF are disclosed in the confidential private placement memorandum.

The Three Seas Initiative Investment Fund

3SIIF is a dedicated commercial fund targeting infrastructure investments in Central and Eastern Europe (‘CEE’). The Fund invests in energy, transport and digital infrastructure in European Union (‘EU’) CEE member states which border the Baltic, Adriatic and Black Seas where the demand for long-term commercial investment into national infrastructure is among the highest in the EU. The Three Seas Region is comprised of 12 EU CEE member states which border the Baltic, Adriatic and Black Seas.

Amber Infrastructure Group is the exclusive investment adviser to the Fund and is responsible for origination, asset management and capital raising services.

Amber Infrastructure

Amber Infrastructure is a UK based specialist international investment manager, focused on investment origination, asset management and fund management. With over €5.5 billion in funds under management, Amber Infrastructure invests across eight funds and a number of managed accounts.

Amber Infrastructure’s core business focuses on sourcing, developing, advising, investing in and managing infrastructure assets across the public, transport, energy, digital and demographic infrastructure sectors that support the lives of people, homes and businesses internationally.

Amber Infrastructure is headquartered in London with offices in Europe, North America and Australia and manages over 175 investments. Amber Infrastructure employs over 170 infrastructure professionals globally.

R.Power S.A.

R.Power S.A. is the leading integrated independent solar power producer in Poland, with a growing presence in Italy, Portugal, Spain, Germany and Romania. R.Power S.A.’s activities cover the entire value chain of the solar energy sector, including the development of photovoltaic power plant projects, photovoltaic power plants engineering, procurement and construction, operations and maintenance and production of green energy (as an IPP). The company is currently developing a portfolio of more than 8.3 GWp of PV assets and has a portfolio of limited-risk projects (built, under construction or secured grid connection) of approximately 0.9 GWp. R.Power is also Green Bond issuer with bondholders such as EBRD, PFR and BGK.

Quanta Energy

Quanta Energy is a leading provider of photovoltaic solutions for commercial and industrial clients (C&I segment). Headquartered in Poland, the 80 person strong organisation aims to contract over 85 MWp solar installations for C&I clients in 2023 almost tripling last year’s result. Quanta Energy provides comprehensive solutions for its clients including technical audit, financing (including Solar as a Service), permitting and commissioning of solar installation. Over the next two years Quanta Energy plans to roll out its business model in two markets outside of Poland.

Nomad Electric

Nomad Electric is a leading Polish provider of engineering, procurement and construction (EPC), and operations and maintenance (O&M) services for large-scale solar farms. The company operates in Poland, Portugal and Romania, and secured contracts for technical assets management of more than 1 GWp solar installations. Nomad Electric focuses on maximising the profitability of solar farms leveraging advanced technologies such as high-tech control centre, machine-learning data analytics, thermographic drone inspections and electroluminescence scans.