Opdenergy, an independent renewable energy producer, has signed a green financing agreement of €350 million (~$356.4 million) with BBVA and the European Investment Bank (EIB) for the construction and commissioning of 605 MW of a solar PV portfolio located in Spain.
The project falls under the green financing framework of Opdenergy, which was announced last year with a Second Party Opinion by Mercados Aries, having a tenor of between 18 and 18.5 years and includes a senior debt principal amount of €301 million (~$306.8 million), a €29 million (~$29.56 million) PPA guarantee line and a credit line facility of €17 million (~$17.33 million) to cover six months debt service reserve account.
Luis Cid, CEO of Opdenergy, said: “This new financing agreement is a big step that will help us reach the objectives in our roadmap. We are very grateful to both BBVA and the European Investment Bank for supporting us and placing their trust in our business model, which is essential to meet world climate commitments in the coming years.”
The projects are in different provinces of Spain, such as Zaragoza, Teruel, Ciudad Real, and Cuenca.
BBVA acts as the sole bookrunner for the transaction.
With the debt raised, the company is working towards meeting its 2025 target of reaching a capacity of 3.3 GW of renewable energy projects in operation and under construction.
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.