Lenders back €440 million financing for German BESS portfolio

A syndicate of 11 lenders has provided approximately €440 million in financing for the construction of a portfolio of 11 battery energy storage system (BESS) projects in Germany, according to law firm Herbert Smith Freehills Kramer, which advised the lenders on the transaction.

Kyon Energy, a subsidiary of TotalEnergies, is developing the 790 MW portfolio at sites across Germany. TotalEnergies acquired the company in 2024.

The portfolio has a combined capacity of around 790 MW and is under construction across various sites in Germany.

Allianz Global Investors acquired a 50% stake in the portfolio from TotalEnergies in March 2026, ahead of this month’s debt financing. The overall investment program for the portfolio is valued at around €500 million, with roughly 70% financed by debt, according to separate market reporting.

Société Générale Corporate & Investment Banking acted as financial adviser on the transaction, according to Herbert Smith Freehills Kramer. The projects are scheduled to become operational by 2028, with Saft supplying the batteries.

Matthew Job and Charlotte Whight, partners at Herbert Smith Freehills Kramer, said the deal shows “the bankability of BESS in Germany, a technology that is vital to balancing the grid alongside the increased use of intermittent renewable energy sources.”

Hannes Jacobi, a partner at the firm, said “lenders and sponsors are increasingly looking for portfolio financing structures that can support the next phase of the energy transition.”