Atlas Renewable Energy, a solar and wind project developer, secured a COP 473.77 billion (~$113 million) senior secured loan to develop, construct, and operate the 201 MW Shangri-La solar project in the Tolima Department of Colombia. IDB Invest and Bancolombia provided the financial package.
In February, Atlas acquired the Shangri-La project, initially developed by Rayo Energia and Black Orchid Solar. The project is expected to reach commercial operation at the end of 2025.
A Colombian company will receive clean energy from the Shangri-La project under a power purchase agreement signed with Atlas. Shangri-La is the largest solar project financed by IDB Invest in Colombia and marks Atlas Renewable Energy’s debut in the country.
“At IDB Invest, we see Atlas as a strategic partner in advancing sustainable development across Latin America. The financing of this significant project will play a crucial role in Colombia’s energy transition. Additionally, providing local currency liquidity and co-financing alongside Bancolombia, a long-standing partner in financing projects within the country, has been pivotal,” said Marisela Alvarenga, Chief Investment Officer at IDB Invest.
Last month, the company secured R$1.5 billion (~$274 million) in financing to develop the Luiz Carlos solar complex. The 787 MW solar project is in Paracatu, Minas Gerais, Brazil, and will begin commercial operations in 2025.
According to Mercom’s 1H and Q2 2024 Solar Funding and M&A report, large-scale project funding in 1H 2024 came to $19.9 billion in 117 deals compared to $14.9 billion in 113 deals in 1H 2023.
This week, Encavis, a solar and wind project developer, signed a non-recourse project financing agreement of €60.7 million (~$67.10 million) for its 114.2 MW Lindenhof solar project in Germany. The company’s in-house project finance team structured, arranged, and managed the transaction.
