MVV Energie AG has secured financing for the construction of its new Medworth thermal waste treatment plant in Wisbech, Cambridgeshire, United Kingdom. The project represents MVV's largest single investment to date, with an estimated cost of around half a billion euros. The plant is being built by Swiss green technology company Kanadevia Inova.
KfW IPEX-Bank is acting as the sole lender, hedge provider, and export credit agency (ECA) agent for the project. The financing structure includes both construction and operational phase funding over a total period of 19 years. Construction phase financing offers flexibility with multi-currency options in euros, Swiss francs, and British pounds, while operational phase financing is entirely in British pounds. Interest rate and currency risks are managed through derivative instruments provided by KfW IPEX-Bank.
Dr Velibor Marjanovic, member of the Management Board of KfW IPEX-Bank, stated: "We are pleased to be able to support our valued customer MVV in this modern and important infrastructure project. 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 in its history, MVV has incorporated export risk insurance into its project financing through Swiss Export Risk Insurance SERV. SERV insures most of the portion of financing related to the construction contract as part of a buyer credit insurance agreement with KfW IPEX-Bank. The process was coordinated among SERV, Kanadevia Inova, MVV, and KfW IPEX-Bank.
Klaus Schmidberger, Senior Vice President Project Finance & Infrastructure at SERV said: "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." He added: "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."
Marc Speicher, Head of Finance at MVV Energie AG commented: "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. 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."
MVV Energie AG employs more than 6,600 people and reported annual turnover around 7.2 billion euros for its 2024 financial year. Its activities span energy production through distribution networks as well as environmental services across Germany’s Rhine-Neckar region and internationally.
KfW IPEX-Bank specializes within KfW Group on project and export finance for German and European firms worldwide.
SERV operates as a public institution under Switzerland’s federal government offering export risk insurance primarily funded through premiums rather than taxes; it supports Swiss exporters against payment defaults abroad while helping maintain liquidity.