Project Finance Brief: China Three Gorges to Acquire 400 MW of Solar and Wind Portfolio

Old Mutual fund acquires majority stake in a 5 MW Rosh Pinah solar project in Namibia


From: Mercom Capital Group

Spanish solar project developer Solaria Energia y Medio Ambiente has signed an agreement with Dutch lender Rabobank for financing 150 MW of solar projects in Spain. This agreement also includes the planned participation of the German development bank KfW, subject to its committees’ approval. The financing is organized under the Project Finance modality for around €75 million (~$91.7 million). The projects are expected to be online by 2021.

Technique Solaire Group, a France-based solar developer, has obtained €133 million (~$161.4 million) of senior debt to finance and refinance 255 MW of solar PV projects in France. The company will receive a brownfield tranche of €25 million (~$30.4 million) to refinance 76 existing solar projects totaling 17.5 MW and a greenfield tranche of €108 million (~$131.6 million) to fund the construction of 179 new ones with a total capacity of 76 MW by early 2023. The financing operation was implemented with the Credit Agricole Group and Bpifrance.

China Three Gorges Europe, a part of CTG Group, has reached an agreement to acquire operational wind and solar projects in Spain with a combined capacity of over 400 MW. The deal, for which the price has not been disclosed, is with Corporacion Masaveu, Korys Group, Exus Management Partners, and a group of Portuguese minority investors. The transaction is pending regulatory approvals and is expected to be completed before the end of the second quarter of 2021.

An infrastructure investment fund managed by Old Mutual Investment Group (Namibia) has acquired a majority stake in a 5 MW solar PV project at Rosh Pinah in the Karas Region of Namibia. The fund has acquired a majority of the shares in Aloe Investments Number Twenty-Seven (Pty) Ltd, the project company that owns and operates the Rosh Pinah 5 MW solar project. The acquisition forms part of a joint transaction with Sturdee Energy Namibia, an African independent power producer, which has acquired a minority stake in the project.

Romanian energy provider Restart Energy plans to invest $30 million in a solar project in the northwestern locality of Sarmasag, Salaj county, Romania. Restart Energy has acquired the project in a ready-to-build phase and plans to turn it into a 45 MW solar project. The Sarmasag park will have an annual energy production of 55 million kWh – enough to supply approximately 30,000 households with green energy.

Eni has signed an agreement with X–Elio for the acquisition of three solar PV projects totaling 140 MW in southern Spain. Eni and X-Elio have also entered into discussions for a larger strategic collaboration to develop renewable projects in Spain, where Eni aims to grow up to 1 GW in the next five years, contributing to the 5 GW installed capacity from renewable sources target for 2025.

Scatec, a renewable power producer, and its local partner Nizam Energy has closed financing for the 150 MW Sukkur solar power project with a total investment of about $100 million. FMO, the Dutch development bank, Faysal Bank, Bank of Punjab, and PAK Kuwait Investment have signed credit agreements for the non-recourse debt financing of the Sukkur project. Half of the debt quantum is provided by FMO under a credit facility of $39 million, and the other half by the three local commercial lenders under PKR denominated credit facilities of an aggregated PKR 6.7 billion. The credit facilities cover up to 75% of the total project cost.

CenterPoint Energy announced its Indiana-based electric and natural gas business, CenterPoint Energy Indiana South, is seeking approval from the Indiana Utility Regulatory Commission to acquire a 300 MW solar project from Capital Dynamics. Arevon Energy Management and energy company Tenaska are co-developing the project.

NTR, a sustainable infrastructure investor and asset manager that acquires, constructs, and manages renewable energy projects, has acquired a 54 MW portfolio of co-located solar and battery storage projects in Wexford, Ireland, from renewable energy developer RES. The portfolio comprises two battery storage projects adding 25 MW of storage capacity and a 29 MW solar PV project. The portfolio of projects will enter operations in 2022.

Cordelio Power has acquired the 400 MW Firebrick wind project from Tenaska, a U.S.-based renewable power developer. The project is located in Audrain County, Missouri, United States. Tenaska will work with Cordelio to advance the project under a development services agreement.

French oil and gas major Total announced its plans to sell parts of its stake in its solar and wind farms to France-based Crédit Agricole Assurances and Banque des Territoires. The value of the portfolio (about 340 MW) is around $600 million. The company hopes to de-risk the group’s portfolio while increasing cash flow and returns on equity. Crédit Agricole Assurances, a financial institution, is set to acquire a 50% stake for 285 MW of solar and wind projects in Total’s power portfolio. The acquisition comprises 103 MW of wind projects spread across nine farms and 182 MW of solar projects across 44 solar projects.

Octopus Renewables Infrastructure Trust, which is building a diversified portfolio of renewable energy assets, including solar, has refinanced a portfolio of solar projects in France, totaling almost 120 MW. The new €125.7 million (~$152.7 million) fully amortizing debt facility has been provided by Allied Irish Banks, Societe Generale, and La Banque Postale.

Danish energy company Nordic Solar has closed the acquisition of a 48.5 MW solar project in Portugal from Chinese developer Chint Solar. Following the deal, the Insua solar PV project’s construction commenced at the Alentejo region site. Nordic Solar and Chint Solar will partner during the construction process.

Lightsource bp, a developer of solar energy projects, acquired a 78 MW solar project from EGI, a renewable energy developer located in Sicily, through a co-development agreement. The project will secure financing and begin construction in 2022 and is expected to complete by 2023.

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.

Image credit: Verwood Solar


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