Modus Asset Management, a Lithuania-based renewables investor through Modus Poland Solar Fund I, secured €58 million (~$63.97 million) in debt financing from a group of lenders consisting of BNP Paribas Bank Polska and PKO Bank Polski.
The investment facility will finance the acquisition of a 93 MW operational solar PV portfolio throughout Poland. The portfolio’s revenues will be safeguarded through a combination of corporate power purchase agreements and contracts for different (CfD) auction tariffs.
Modus Poland Solar Fund I is a closed-end investment fund that invests in operating solar power plants in Poland. The electricity generated by these plants is sold through corporate PPAs and CfD. Currently, the Fund owns over 113 MW of solar PV assets in Poland.
“We are pleased to have such reliable and committed partners supporting us in our goal of accelerating the region’s transition to renewable energy. We have been active in the Polish renewable energy market since 2018 and the accomplishment of such size debt financing proves us that we are on the right path. Poland is one of our core markets, where we are seeking further acquisitions in solar PV and onshore wind”, – says Povilas Pečiulis, CEO of Modus Asset Management.
“PKO Bank Polski is the leader in financing the green transition in Poland. We are proud to support Modus Asset Management in the implementation of the RES projects, which is part of our policy of financing the development of renewable energy. As the largest Polish bank for business, we want to jointly counteract climate change and contribute to the transformation of the Polish energy system. This investment is another important step on the way to achieving the goal”, – says Marcin Majewski, Head of Corporate Customer Relations Division in PKO Bank Polski.
According to Mercom’s 1H and Q2 2023 Solar Funding and M&A Report, in 1H 2023, there were 116 project acquisitions for 25.5 GW of solar projects compared to 148 project acquisitions totaling 37.8 GW in 1H 2022.
On July 25, Modus Asset Management, through its Clean Energy Infrastructure Fund (the “Fund”), and Evecon, a solar and wind project developer, entered into a transaction to acquire a 100% stake in a 55 MW solar PV portfolio of ground-mounted solar photovoltaic projects in Latvia.