Lightsource bp Closes Tax Equity Investment Deal for 481 MW Solar Projects

Enfinity Global, a renewable energy company, secured €142 million (~$151.15 million) in the long term and VAT financing and letter of credit (LC) facilities to construct three solar projects with 112 MW capacity in Italy.

The financing was provided in two tranches by Santander Corporate & Investment Banking (Santander CIB) and BayernLB, providing project financing for two power plants totaling 72 MW and an additional tranche for 40 MW that also included Nomura.

They also acted as mandated lead arrangers for each project financing through a club deal structure that includes €85 million (~$90.48 million) of non-recourse senior debt financing and €57 million (~$60.67 million) of VAT financing and LC facilities for the power purchase agreements (PPAs) and photovoltaic modules.

The solar projects are located across the Lazio region and are expected to be operational in the first half of 2024. They are expected to produce 191 GWh of clean electricity annually, enough to power 71,000 homes and offset 76,500 tons of CO2 emissions.

“We are grateful to partner with three leading financial institutions and demonstrate the quality of our portfolio and the depth of the financing sector,” said Carlos Domenech, CEO of Enfinity Global. “Enfinity Global has an additional 318 MW of permitted projects and is committed to building out its incremental 2 GW of advanced permitting projects in Italy. We aim to bring solutions to our customers by delivering predictable and affordable clean energy. Our plan will accelerate the country’s energy independence goal while creating thousands of jobs in the green economy.”

In August, Enfinity Global secured $242 million in long-term financing for three solar projects in Japan totaling 70 MW. Nomura, a financial institution, acted as the initial lead arranger and sole bookrunner, and Aozora Bank, a Japanese commercial bank, served as the lead arranger and agent.

According to Mercom’s 9M and Q3 2022 Solar Funding and M&A Report, the large-scale project funding in the first nine months (9M) of 2022 came to $22.8 billion in 128 project funding deals, a 97% increase compared to $11.6 billion in 138 projects in 9M 2021.