Frankfurt am Main/Bremen, 24 April 2020 - ING Wholesale Banking has, for the first time worldwide, concluded a loan for the financing of a wind farm on the basis of the new €STR reference interest rate. ING has provided Energiekontor AG with a 19-year loan which is not based on Euribor (Euro InterBank Offered Rate), but calculates the interest rate using the new reference interest rate of the European Central Bank, the Euro Short Term Rate (€STR). "Due to the long duration of the transaction, we decided to choose a reliable and above all permanent reference for our project. We are pleased that with the €STR as a basis, we are also taking an innovative approach to financing," says Günter Eschen, Member of the Board of Energiekontor AG, explaining the decision. Olaf Beyme, Head of Renewables&Power at ING adds: "The fact that we were able to use €STR as a basis for financing the wind farm for the first time is a milestone for us and underpins our goal of being able to offer our corporate customers future-proof loan options.
With this pilot project, Energiekontor is not only a pioneer in the field of renewable energies, but is also positioning itself as a pioneer in the use of the ECB's new reference interest rate. "Our strategy is to always offer our customers contemporary and innovative solutions. With this project financing, Energiekontor AG is one step ahead of the market and is also securely prepared for the future - especially in view of the question marks behind the continued existence of the Euribor and Libor," says Thomas Epple, Head of Financial Markets Germany&Austria at ING, who is responsible for this topic at ING in Germany. "The charm is that the underlying transaction as well as the partially used interest rate hedge should use the official rate of the ECB and a possibly necessary adjustment should not be necessary in a few years" he substantiates.
ING was legally advised by Linklaters partner Dr Christian Storck.