Project Finance Brief: Capital Dynamics Buys 100% Stake in a 175 MW Solar Project

Sonnedix closed a $196 million financing for 29.3 MW solar projects in Italy

January 4, 2021


From: Mercom Capital Group

Sonnedix Japan, an independent solar power producer, on behalf of the Sonnedix Group, completed the acquisition of a 55.6 MW ground-mounted solar PV project. The project, located in  Hitachi City, Ibaraki prefecture, started operations in August 2017 and is currently under a feed-in-tariff until August 2037. Sonnedix Japan currently has 251.6 MW of solar PV capacity in operation and 338 MW under development.

Sonnedix also announced the completion of non-recourse financing of solar PV projects in Italy, at a value of €160 million (~$195.91 million). The financing included a debt service reserve facility and long-term facility, which has been partially disbursed for the refinancing of 21 solar projects, with an installed capacity of 29.3 MW, located in several Italian regions. Credit Agricole Corporate and Investment Bank, Milan Branch acted as mandated lead arranger, green loan lead coordinator, and lender, while Intesa Sanpaolo, Societe Generale, Milan Branch, and UBI Banca (part of Intesa Sanpaolo Group) acted as Mandated Lead Arrangers, Green Loan Co-Coordinators and Lenders. Intesa Sanpaolo also acted as Account Bank and Agent.

Ecofin US Renewables Infrastructure Trust has acquired nearly 12 MW of solar capacity through two projects in the U.S. The investment trust, incorporated in England and Wales, raised $125 million in its initial public offering (IPO) in London earlier this month. The two acquisitions are part of the seed investments announced in its IPO prospectus. Ecofin paid $10.9 million in total for 100% cash equity interests in a commercial rooftop solar facility in California with a capacity of 4.8 MW and a ground-mount solar installation in Massachusetts with a capacity of 7.1 MW. Both projects have contracts for 100% of their output with a weighted average remaining term of more than 17 years.

US solar developer Sunpin Holdings has closed a tax equity financing of undisclosed size with a unit of Morgan Stanley to support a project in California with a capacity of 98 MW. Specifically, the financing coming from Morgan Stanley Renewables will back the Titan Solar 1 project in Imperial County, which has been operating since earlier this month.

New Energy Solar, a sustainable investment fund, announced the sale of up to a 50% interest in Mount Signal 2 (MS2) solar project to US Solar Fund (USF) for a total price of between $44 and $46 million. The purchase price is consistent with the implied net asset value for 50% of MS2 of $44.75 million, based on the last audited net asset value for MS2 of $89.5 million as of 30 June 2020. The transaction is structured in two tranches, with Tranche One consisting of an immediate acquisition of an initial 25% equity interest for a fixed price of $23 million. Tranche Two consists of an option for USF to acquire a further 25% equity interest for $22 million subjects to a performance-based adjustment mechanism which can adjust the price upwards or downwards by up to $1 million.

Masdar, a subsidiary of Mubadala Investment Company, announced the financial close of the 100 MW Nur Navoi solar project in Uzbekistan. Masdar established Nur Navoi Solar FE as the local project company to deliver the project, which is scheduled to start operations in the third quarter of 2021. The project company will also operate and maintain the project for 25 years.

Capital Dynamics, an independent global private asset management firm, completed the sale of a majority interest in its Beacon portfolio to Tortoise Ecofin and S&B USA Energy. Each buyer has acquired a 49.5% ownership of the portfolio. Capital Dynamics retains a minority stake of 1%. The 107.8 MW Beacon portfolio consists of two projects: Beacon II (59.6 MW) and Beacon V (48.2 MW). Both sites interconnect and sell power to the Los Angeles Department of Water and Power (LADWP) under two 25-year fixed rate Power Purchase Agreements.

Capital Dynamics also announced that it’s Clean Energy Infrastructure (CEI) business had completed the acquisition of the remaining 69.98% interest in Arlington Valley Solar Energy II (AVSE II), a 175 MW solar PV project, from funds Apollo Funds managed by affiliates of Apollo Global Management. CEI acquired a 30.02% interest in AVSE II as part of the acquisition of three solar PV projects from LS Power in November 2020. Following the acquisition from the Apollo Funds, Capital Dynamics has assumed 100% interest in the AVSE II solar PV project.

Fotowatio Renewable Ventures (FRV), a part of Abdul Latif Jameel Energy and a developer of renewable energy projects closed the financing agreement for the 115 MW Metz solar project. The funding is provided by Westpac and NORD/LB in the form of a Green Loan compliant with the Loan Market Association Green Loan Principles and the Green Projects requirements. Metz Solar Farm will bring FRV’s Australian operating and in construction solar projects to eight, of which four are in New South Wales, including Moree (56 MW) and Goonumbla (69.75 MW) in operation and Sebastopol (90 MW) under construction.

Sonnedix Japan, an independent solar power producer, on behalf of the Sonnedix Group, completed a project financing led by The Daisan Bank, a local bank headquartered in the Mie prefecture. The financing covers a 2.3 MW ground-mounted operational solar PV project acquired in September this year. The project began operations in 2016.

7C Solarparken, a solar project developer, has acquired an 8.3 MW Hottingen solar project from Energiekontor. The solar project is located in the municipality of Hottingen in the central Franconian district of Weißenburg-Gunzenhausen, around 40 km south of Nuremberg, and was put into operation on December 18, 2020. 

EDP Renováveis completed the sale of an 80% stake in a 563 MW wind and solar portfolio to Canadian firm Connor Clark & Lunn Infrastructure. The deal corresponds to an enterprise value of $684 million. The EDP – Energias de Portugal subsidiary retained the remaining 20% stake in the portfolio. EDP Renováveis will also continue to manage the portfolio, comprising the 66 MW Hog Creek wind project in Hardin County; the 100 MW Meadow Lake wind project in White County; the 98 MW Quilt Block wind project in Lafayette County; the 99.1 MW Redbed Plains wind project in Grady County; and the 200 MW Riverstart solar project in Randolph County.

Altus Power America – an investor, owner, and operator of clean energy projects – completed the acquisition of approximately 100 MW of distributed solar assets across California, Maryland, Massachusetts, Minnesota, New York, and Vermont. The company expanded its long-standing partnership with Blackstone to finance the projects.

Danish renewable energy project developer European Energy signed an agreement to sell the 30 MW Naessundvej solar project in Denmark to Conquest Group, an international asset management company.

For reports and trackers on funding and M&A transactions in solar, energy storage, smart grid, and efficiency sectors, click here.

Read last week’s project finance brief.


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