Capcora Arranges Project Financing for PV Portfolio in Spain

Frankfurt am Main, Germany - Capcora, a consulting firm specialized in real assets, has arranged a loan facility in an amount of Euro12 million for an international client.

The loan represents the first tranche of a wider framework agreement and is intended to finance a sub-portfolio of ten PPA projects with a capacity of 33.5 MWp on the Balearic Islands. This is part of an 84 MWp portfolio developed by Capcora's client in the Spanish islands. Capcora accompanied the entire transaction as sole financial and model advisor.

The initial tranche includes ten photovoltaic projects in a power range between 2.20 and 4.20 MWp. The electricity generated will be sold under a 10-year framework purchase agreement (PPA) signed in December 2020 with the Spanish utility Holaluz Clidom SA.

The non-recourse financing was granted by a German credit institution. The loan was taken out at the level of a Spanish holding company and is divided into a commercial and a KfW tranche. The term of the loan is 16.5 years.

One challenge was the dual level financial structure combined with KfW refinancing and a PPA pricing mechanism created for multiple projects with different commissioning dates. This added significant complexity to the process, modeling and documentation, according to Alexander Enrique Kuhn, managing partner at Capcora.

The lender was advised by Simmons & Simmons as legal counsel and SOLpeg as technical advisor.

Source: IWR Online, 12 Aug 2021