Bond advises ING and Rabobank on interest-hedging regarding financing of geothermal and heating network projects

Asset finance
Financial derivative transactions

Bond has advised ING and Rabobank on the contract documentation and all other legal aspects of the interest rate swaps in relation to the financing of the geothermal project HVC Aardwarmte Maasdijk and Warmte Netwerk Westland. This is the largest Dutch geothermal project so far. This project will contribute 45 MWth – 60 MWth to the sustainable heat supply for approximately 80 growers, which occupies a large portion of the southwest part of Westland. This is comparable to the heat demand of 50,000 households. With geothermal energy as a sustainable heat source for cultivators and households, the geothermal energy sector contributes to the reduction of CO2 emission in the Netherlands as agreed in the Climate Deal.

Other financiers involved are BNG, Triodos Bank and A.S.R. Verzekeringen.

Financial close of the transaction has occurred on 13 December 2022. This is the first time that this many financiers are involved in a Dutch geothermal project. The financing entails a sum of approximately EUR 115 million. HVC is the developer of the geothermal energy source. Because of financial close, investment funds will be made available for the implementation of a new geothermal project (Polanen) with a drill site in Monster in the close future.

HVC is a sustainable energy and waste company owned by 48 Dutch municipalities and 8 Dutch Water Authorities (Waterschappen). The main tasks of HVC are, according to themselves, supporting the participating municipalities and Water Authorities with the transition away from gas and improving the sustainability of waste management.

Other advisors involved were Stek (lead counsel for the financiers) and Rebel (financial advisor for the sponsors).

For more information about the project, please see: (only in Dutch)