Münch Energie, the German-based decentralized energy supplier, secured €21 million (~$22.12 million) in mezzanine financing, a hybrid of debt and equity financing, for a solar photovoltaic portfolio of 125 MW projects.
The financing was provided by a German pension fund, which is managed by Prime Capital. The transaction was actively supported by Capcora as an exclusive financial advisor.
Münch Energie has issued a bearer bond as part of a private placement. The total subordinated financing volume amounts to €20.7 million (~$21.80 million) and is secured by 62 photovoltaic projects, which consist of mainly operational assets and some under construction.
“Through this transaction, we were able to generate considerable liquidity to advance the energy transition at the urgently needed speed. In the long term, this will benefit the municipalities, citizens, and farmers, with whom we would like to realize numerous projects in close cooperation. We are all the more pleased that we have been able to create the bridge between long-term security and a future-oriented and sustainable expansion of the energy supply through the trust of the pension fund,” said Mario Münch, Managing Director of Münch Energie.
Simmons M&A Simmons supported Prime Capital as a legal advisor in this transaction, and meteocontrol acted as a technical advisor, as well as Eight Advisory (tax) and EURO Transaction Solutions (insurance). For Münch Energie, CMS acted as legal advisor and Capcora as exclusively mandated financial advisor.
According to Mercom’s 1H and Q2 2023 Solar Funding and M&A Report, in the first half (1H) of 2023, 116 solar project acquisitions totaling 25.5 GW were announced compared to 148 project acquisitions totaling 37.8 GW in 1H 2022.
Ashtrom Renewable Energy, an independent power producer and subsidiary of the Israel-based Ashtrom Group, recently secured $270 million for its 400 MW Tierra Bonita Solar Project in Texas. The green financing was secured from a group of five banks, including BHI, the U.S operation of Bank Hapoalim Group, Bayerische Landesbank, ING Capital, Rabobank, and Société Générale.