Innovative balance sheet structure: How Burgenland Energie mobilizes 500 million without balance sheet pressure

‍

A new type of financing structure enables the Austrian state energy supplier to make a pioneering investment package in renewable energies - with a potential signal effect for the financing of the energy transition.

Corporate law innovation creates room for maneuver

Burgenland Energie has established a remarkable financing model that could set the trend for capital mobilization in the energy sector. The portfolio financing of EUR 500 million secures the company the funds for the largest project in its history.

The highlight of the model: the corporate structure. A joint venture between the province of Burgenland and the energy supplier forms the legal basis. Due to the majority shareholding of the province, the energy supplier does not have to consolidate the financing. Liability on the part of the joint venture partners is excluded.

"For us, this is the biggest project in our company's history," explains CFO Reinhard Czerny. He sees it as "a new pioneering model for the future financing of large-scale climate transition projects."

EIB-led financing consortium

The European Investment Bank (EIB) is providing 250 million euros of the financing and classifies the project as a flagship project. The remaining funds come from Erste Bank, Unicredit, Raiffeisenbank International, LBBW and the insurers Talanx and Vienna Insurance Group. A further 100 million euros will come from EIB-backed loans.

With an equity capitalization of 200 million euros, the total investment of 700 million euros will flow into 13 wind farms and photovoltaic parks, which are to be completed by 2026.

Strategic expansion with accordion facility

The current package is just the first step in an ambitious strategy. In phase two, Burgenland Energie is planning around 40 renewable energy projects with a total output of 2,000 megawatts - around a fifth of Austria's current capacity.

The company has already secured an accordion facility of up to EUR 820 million for this extended investment framework of EUR 1 to 1.5 billion.

Key economic figures and consulting

The medium-sized energy supplier with 900 employees generated sales of just under 921 million euros in 2022/23. Earnings before taxes amounted to 43.6 million euros (+3.2% compared to the previous year).

The financing was structured by Deloitte (financial advisor) and Baker McKenzie (legal advisor). The lenders mandated Hogan Lovells and Binder Grösswang.

Political context and parallels

The project is set in a complex political environment. The SPÖ-led state government under Hans Peter Doskozil regularly faces criticism, including accusations of excessive borrowing via the state holding company. Doskozil has been governing in a coalition with the Greens since February 2025.

Other Austrian energy suppliers also use EIB financing. Energie AG Oberösterreich secured around EUR 400 million at the end of 2024 for two hydropower projects with total costs of EUR 598 million.

‍