Dentons assisted IKAV in relation to its investment in the construction of nine gas power plants developed by Metaenergia for the Italian peak capacity market. The transaction marks the first investment of IKAV’s IEI II Fund, which focuses on global infrastructure investments.

IKAV is an international asset management group, headquartered in Germany, with local offices in Luxembourg, Italy, Spain, Portugal, UK, US and France. It focuses on infrastructure investments and has a client base consisting mainly of pan-European insurance companies and pension funds.

Metaenergia is an Italian provider of electricity, natural gas and energy efficiency services owned by the Molinari family.

In the context of the transaction, IKAV also purchased shares and bonds issued by the UK holding Metaenergia UK Ltd from the existing investor, which had previously subscribed for the pre-construction development of the nine gas-fired power plants. IKAV purchased a significant stake in the project company. Senior debt financing was provided by MEAG Munich Ergo, the asset management company of the Munich Re Group, by means of subscription of alternative debt instruments issued by Metaenergia.

Once operational, the power plants will benefit from the fixed capacity market premiums from Italy’s transmission grid operator Terna for a period of 15 years. The capacity payments are designed to support power plants able to provide back-up generation capacity at short notice in case of shortfalls from intermittent renewable plants.

Dentons acted with a multi-jurisdictional team involving professionals from Italy, the UK and Luxembourg, coordinated by partner Carsten Steinhauer and comprising managing counsel Mileto Mario Giuliani for regulatory aspects related to the capacity market, counsel Christian Fabricatore, senior associate Riccardo Narducci and trainee Paolo Piscopo. Partners Gianpaolo Garofalo and Giovanni Diotallevi, managing counsel Andrea De Luca Picione, senior associate Bianca Chiara Sinisi and associate Stefania Verroca handled the banking and finance aspects. Partner Roberta Moscaroli, associate Jacopo Mario Rosa and trainee Mariateresa Soave Carparelli dealt with tax issues.

Partner Michele Carpagnano and associate Giulia Giordano handled the competition and antitrust and Golden Power issues. Partner Cristian Fischetti  advised on restructuring, while partner Luca De Menech and associate Marco Viola advised on employment law.

For UK law aspects, the team included partner Nigel Webber, senior associate Christopher Winn, associates Danni Hofmeyr, Joseph Collingwood and Jonathon Tulip for corporate issues; partner Mark Cheney and senior associate Tom Guilfoyle for finance; and partner James Meakin for tax.

For Luxembourg law issues, the team included partner Namik Ramić and associate Maria Rodriguez, for corporate advice; as well as partner Jean Luc Fisch and senior associate Vincent Quittre for tax.

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