ENCAVIS, an independent power producer, has secured €47.7 million (~$48.42m) from Dutch Rabobank to refinance a 74 MW solar portfolio in the Netherlands. All systems have been operational since 2021 and benefit from the Dutch remuneration system SDE+, which provides for a fixed feed-in tariff for around 15 years.
The financing of the solar projects has a term ending on June 30, 2039. It is divided into a “Floating Rate Facility,” which is fully interest-secured over the term of the loan through an interest rate swap in the amount of €24.7 million (~$25.23 million), a €19 million (~$19.41 million) Fixed Rate Facility and a €4.0 million (~$4.09 million) Debt Service Reserve Facility.
ENCAVIS received liquid funds of €33 million (~$33.71 million) from the completed refinancing. This consists of proceeds from the valuation of the Floating Rate Facility (minus transaction costs) and distribution of €9.2 million (~$9.40 million) from the Willem projects themselves.
“We are pleased that as part of the refinancing with Rabobank, in addition to introducing the floating rate facility, we were able to retain the existing fixed rate facility, the conditions of which we would not have been able to achieve anywhere else on the market in today’s interest rate environment. A great result that frees up funds for further investments,” said Dr. Christoph Husmann, CFO of ENCAVIS, the borrower-friendly conditions of this refinancing at the holding level.
According to Mercom’s 1H and Q2 2022 Solar Funding and M&A Report, announced large-scale project funding in Q2 2022 came to $6.9 billion, a 24% decrease compared to $9 billion in Q1 2022.
Capital Energy, a Spanish energy company, recently raised financing of €165 million (~$167 million) for 206 MW solar and wind projects from MEAG, an asset manager of Munich Re and ERGO. Capital Energy plans to allocate new project finance to five renewable facilities, comprising four wind farms, one of which is operational, and one solar project.