Project Finance Brief: Downing Renewables Acquires 96 MW of Solar Assets

Adani Green to acquire a 75 MW solar project from Sterling and Wilson

March 30, 2021


From: Mercom Capital Group

Downing Renewables & Infrastructure Trust, which invests in renewable energy projects across the U.K., completed the acquisition of a 96 MW portfolio of 50 solar PV projects located in mainland Great Britain and Northern Ireland for a total consideration of £42M (~$58M). The portfolio comprises 13 ground-mounted sites situated across the mainland totaling 73 MW; 28 commercial rooftop assets totaling 10 MW; and seven residential rooftop portfolios in Northern Ireland totaling 13 MW.

Adani Green Energy Limited (AGEL) announced that it had signed a share purchase agreement to acquire a 100% stake in an SPV (Special Purpose Vehicle) holding a 50 MW operating solar project of the Toronto-headquartered SkyPower Global. The project is in Telangana and was commissioned in October 2017, and has a long-term Power Purchase Agreement (PPA) with the Southern Power Distribution Company of Telangana.

Adani Green is also acquiring 75 MW of operational solar assets in Telangana from Sterling and Wilson, a Shapoorji Pallonji Group subsidiary, for ₹4.46 billion (~$61.45 million). AGEL said that it signed agreements with Sterling and Wilson to acquire 100% of two special purpose vehicles that own the solar projects. The projects were commissioned in 2017 and had long-term power purchase agreements with the Southern Power Distribution Company of Telangana (TSSPDCL).

HSBC Malaysia acted as a sole lender for a five-year RM181 million (~$44 million) loan to Penang-based HNG Capital Group to acquire an interest in a 330 MW solar project in Vietnam. As part of the Malaysian investment holding company’s vision of growing as a regional power player, HNG Capital acquired a stake in a company listed on the Ho Chi Minh City Stock Exchange.

ReneSola Power, a fully integrated solar project developer, completed the sale of two ground-mounted solar projects in Romania, totaling 15.4 MW to Alternus Energy Group, an independent power producer, for €24 million (~$28.3 million).

Nofar Energy and Noy Fund entered an agreement to buy 90% of the stock of a corporation that holds two solar projects in Spain with a total capacity of 235.5 MW. The project comprises two phases: the Sabinar 1, with an estimated capacity of 152.5 MW, and the Sabinar 2, with 83 MW. The two projects, whose construction will start shortly, are located near the Olmedilla Photovoltaic Park in Castilla de la Mancha in central Spain.

Spanish renewable energy project developer Opdenergy has completed the purchase of 80% of three solar PV projects in Spain from the European infrastructure fund Marguerite II as part of its path towards becoming a large-scale IPP in Europe and the Americas. The projects which Opdenergy developed are fully operational since the last quarter of 2019. The three projects have an aggregate installed capacity of 150 MW (50 MW each).

Denmark-based Obton secured a mezzanine-type bridge facility of €22 million (~$26 million) for brownfield solar PV projects with a total capacity of more than 20 MW in Italy. The short-term facility with a tenor of 18 months was granted by a European debt fund and is dedicated to finance the acquisition and revamping of the projects. Obton has been advised by Germany-based consulting firm Capcora who acted as sole financial advisor.

Czech solar developer Solek Group has obtained an $85.25 million senior secured facility to support a portfolio of PV projects in Chile with a combined capacity of 110 MW. The transaction was fully underwritten by Natixis, which served as sole lead arranger, hedge provider, letter of the credit issuing bank, and administrative agent.

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.