Encavis, a solar and wind project developer, has 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.
Bayerische Landesbank, a long-standing financing partner of ENCAVIS for years, provided the financing, thereby supporting the group’s future growth strategy. In total, the funding includes €46.8 million (~$51.73 million) in term loan facilities, a €2.75 million (~$3.04 million) VAT facility, and €11.1 million (~$12.27 million) in letter of credit facilities.
The solar project in Borrentin, northern Germany, is under construction and expected to be completed by the end of September 2024.
Once operational, the project will produce 121 GWh of clean electricity annually. Nearly 74% of this project’s annual electricity production is fixed by a ten-year long-term power purchase agreement with a corporate off-taker.
“We are glad to have placed this project financing in the bank market with one of our strategic bank partners after a comprehensive selection process amongst the approached institutions. Having our ambition of 7 gigawatts (GW) installed capacity by year-end 2027 in mind and many project financings ahead, this is another example of how important it is for us to have this experienced and professional in-house project financing team,” said Dr. Christoph Husmann, Spokesman of the Management Board and CFO of Encavis AG.
Mercom’s 1H and Q2 2024 Solar Funding and M&A report announced that 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 report underscores the growing investment and M&A activity in the solar energy sector.
Last week, Q ENERGY, a solar, energy storage, and wind project developer, secured €50.4 million (~$55.68 million) in debt financing for the Les Ilots Blandin solar project development. The floating solar project spans over a former gravel pit in the Haute-Marne region of France and has a total capacity of 74.3 MW.
