HSH Nordbank expands renewable energy focus

Germany-based commercial bank HSH Nordbank is planning to generate strong growth in its renewable energy arm this year, as it makes moves to intensify its focus on the Scandinavian market.

According to the Hamburg-headquarted bank, it generated new business of more than €900m in project finance and €300m from other loans to energy companies and utilities including loan renewals in 2015.

The bank is one of the world's biggest providers of shipping finance. However, in recent years it has become active across Europe in finance for renewable energy projects.

"Renewable energies are a clear growth story for us for the fourth consecutive year," said Patrick Miljes, head of corporate client business at HSH Nordbank.

The bank restructured these activities in July 2015, focusing on energy and utilities, infrastructure and logistics, retail and food/beverages, industry and services as well as wealth management.

According to HSH, it has been supporting the growth of renewable energies projects for around 30 years and today figures among the top three European providers of finance in this sector.

The existing loan portfolio is worth around €5bn spread across 230 projects. And a large number of future projects are also in the pipeline, with around 40 transactions accounting for a combined value of € 1.6bn currently in the offing.

Last year, the bank established a successful presence in Finland after entering this market in 2014. "With the provision of long-term finance for six Finnish wind power projects, we were able to substantially exceed our own goals for 2015," said Lars Quanderl, head of Energy and Utilities at HSH Nordbank.

The bank also signed its first contract in Sweden in 2015, additionally receiving enquiries from Norway. In Denmark, the bank is readying wind and solar energy projects.

"Our goal is to continue growing in Scandinavia over the coming years as this market offers a stable political and regulatory environment conducive to further growth," Quandel continued.

This article was written by Liz Gyekye, editor at Biofuels International.