OYA Renewables Secures $216 Million Loan for Solar Projects

Otovo, a Norway-based residential solar installer, has raised €120 million (~$130.4 million) through a combination of debt and equity financing to support the construction of 12,500 solar subscription assets.

The debt component of the funding comes from DNB Bank and Sparebank 1 SR-bank, providing €50 million (~54 million) and €50 million (~$54 million) in committed and uncommitted accordion debt financing, respectively.

The committed financing has a two-year maturity period (with a one-year extension option) and a limit of €50 million (~$54 million) as a revolving credit facility with an uncommitted accordion option of up to €50 million ($54 million).

A €20 million (~$21.4 million) fully guaranteed equity issue was raised through a private placement by the company’s largest shareholder, AxSol AB, at €1.85 (~$2) per share.

After fully utilizing the financing, Otovo’s subscription asset portfolio will consist of around 80-105 MW of solar power and battery assets.

“With 12,000 solar subscription assets, Otovo will own and operate a very large distributed power plant. In fact, it will be equivalent to some of the largest solar power plants in Europe. We will continue to build increasingly more in the years to come and provide Europe with significant amounts of the green power that is crucially needed to overcome the power shortage and environmental crises we are in”, says Andreas Thorsheim, CEO and founder of Otovo.

The company uses proprietary technology to evaluate a home and find the best price and installer through an automated bidding process.

“Otovo’s mission to put solar panels on roofs and batteries into homes across Europe represents a good and concrete example of renewable solutions which contribute to the green shift,” said Trine Loe, EVP Future & Tech Industries in Corporate Banking in DNB.

DNB Markets, a subsidiary of DNB Bank ASA, served as the manager for the private placement and the potential subsequent offering. Otovo has engaged Advokatfirmaet Thommessen AS as its legal advisor for the private placement and the potential subsequent offering.

According to Mercom’s recently released Annual and Q4 Solar Funding and M&A Report, In 2022, announced debt financing in solar came to $12 billion, a 24% decline compared to $15.8 billion raised during 2021. Securitization activity was a key contributor, with $3.1 billion in 12 deals.