MVV finances Medworth thermal waste treatment plant (UK) with KfW IPEX-Bank, including Swiss Export Risk Insurance SERV

• Investment volume of the plant of around half a billion euros
• Earmarked, unsecured corporate financing by KfW IPEX-Bank
• Buyer credit insurance through integration of export risk insurance SERV

The Mannheim-based energy company MVV Energie AG is expanding its portfolio of thermal waste treatment plants in the United Kingdom. As announced in October, construction is currently underway at the UK's fourth plant site in Wisbech, County Cambridgeshire, in the south-east of England, after Plymouth (thermal waste treatment plant), Ridham Dock (biomass plant) and Dundee (thermal waste treatment plant). The Medworth project is the largest single investment in the company’s history, with an investment of around half a billion euros. The plant construction will be carried out by the Swiss green tech company Kanadevia Inova.

KfW IPEX-Bank acts as Sole Lender, Sole Hedge Provider and Sole ECA Agent

MVV finances this important investment with a substantial amount of own resources. As a further element, external debt financing was concluded before construction began, which was structured by MVV together with KfW IPEX-Bank as earmarked and unsecured corporate financing with a volume in the mid-three-digit million range in British pounds. The debt financing is divided into construction and operational phase financing with a total term of 19 years.

The construction phase financing is designed as a flexible, multi-currency facility in euros, Swiss francs and British pounds; the operational phase financing is fully denominated in British pounds. Interest rate and currency risks are hedged by derivative instruments. All financing and hedging instruments are provided by KfW IPEX-Bank.

"We are pleased to be able to support our valued customer MVV in this modern and important infrastructure project," says Dr Velibor Marjanovic, member of the Management Board of KfW IPEX-Bank. "We are very happy to contribute our know-how to offer tailor-made financing that fits perfectly to the needs of the customer."

For the first time, MVV is incorporating export risk insurance into its financing with SERV

On the basis of the construction contract between MVV and Kanadevia Inova, the Swiss Export Risk Insurance SERV is involved in the financing of the project. SERV insures the majority of the financing share attributable to the construction contract within the framework of a buyer credit insurance towards KfW IPEX-Bank. The involvement was initially coordinated between SERV, Kanadevia Inova and MVV and then implemented together with KfW IPEX Bank in a lean and efficient process into a tailor-made financing solution.

"As a strong risk partner, SERV makes a key contribution to the successful structuring of this long-term export financing. Swiss cleantech companies are world leaders and SERV successfully supports these technological strengths in international business, especially in large projects with high financing volumes and long maturities. The "Medworth" project at MVV is an example of the added value that SERV creates for Swiss exporters and their customers and financing partners." says Klaus Schmidberger, Senior Vice President, Project Finance & Infrastructure. "For me personally, it was very exciting to be involved in this complex and challenging project on the SERV side. The constructive and pleasant cooperation of all project participants contributed significantly to the rapid conclusion of the transaction."

"Together with KfW IPEX-Bank and SERV, we have succeeded in implementing large-scale and long-term corporate financing with an integrated interest rate and currency hedging structure that is tailored precisely to the investment," says Marc Speicher, Head of Finance at MVV Energie AG: "By integrating a buyer credit insurance into financing for the first time, we have gained valuable experience and further expanded our portfolio of usable financial instruments."

About MVV Energie AG

With over 6,600 employees and an annual turnover of around 7.2 billion euros in the 2024 financial year, MVV is one of the leading energy companies in Germany. The focus of our activities is the reliable, economical and environmentally friendly supply of energy to our customers from industry, commerce and private households. We cover all stages of the energy value chain: from energy production, energy trading and distribution, to the operation of distribution networks, sales, environmental and energy services. In addition, we are investing in the future viability of our networks, in the modernisation of our generation facilities and in innovative green technologies.

We are pioneers in the energy transition and have committed ourselves with our Mannheim model to a strategic path that will make us one of the first energy companies in Germany to achieve #climatepositive status by 2035. We are consistently focussing on the heat transition, the electricity transition and the associated expansion of renewable generation methods, as well as on green customer solutions. With our climate targets and measures, we are the first German energy company to be "net zero" compatible and are among the world leaders in climate protection. This has been certified by the international "Science Based Targets Initiative" (SBTi). We are also among the best energy companies in the world in terms of sustainability according to renowned rating agencies such as ISS ESG and Ecovadis. In everything we do, we can rely on the competence and know-how of our employees. We will continue to offer them secure and attractive jobs in the future.

MVV is a company in the Rhine-Neckar metropolitan region and the MVV Group operates internationally.

About the KfW IPEX Bank

Within KfW Group, KfW IPEX-Bank is responsible for project and export finance. It supports German and European companies operating in key industrial sectors in global markets by structuring medium and long-term financing for their exports, funding infrastructure investments, securing supply of raw materials and by financing environmental and climate change mitigation projects worldwide.

It finances technologies of the future to support the transformation of its customers and the transition towards sustainable society in all three dimensions – economic, environment and social.

As specialist bank, KfW IPEX-Bank has extensive industry, structuring and country expertise, it takes on leading roles in financing consortia and actively involves other banks, institutional investors and insurance firms. KfW IPEX-Bank operates as a legally independent group subsidiary and is represented in the most important economic and financial centres across the globe.

About the Swiss Export Risk Insurance SERV

SERV is a public institution of the Swiss Confederation. It collects its money through risk-appropriate insurance premiums and is not financed by taxes.

It insures domestic export transactions – goods or services – of Swiss companies, in particular against payment defaults. This means that it compensates an insured exporter or a financing bank if a buyer abroad cannot or does not want to pay for political or economic reasons.

SERV’s insurance products also help companies obtain financing for their production costs and access higher credit limits, which supports them in maintaining their liquidity.

SERV operates on a subsidiary basis and offers its insurance in addition to the services of private insurers. Its offer contributes to the international competitiveness of the Swiss export industry and to the maintenance and creation of jobs in Switzerland.

www.serv-ch.com

Contact persons

MVV Energie AG
Dr. Thomas Renz
T +49 621 290 51 40
M +49 170 625 01 73
Thomas.Renz@mvv.de

KfW IPEX-Bank
Dela Strumpf
T +49 69 7431 2984
dela.strumpf@kfw.de

Schweizerische Exportrisikoversicherung SERV
Simon Denoth
T +41 58 551 55 24
simon.denoth@serv-ch.com