Sun Investment Group (SIG), a solar project developer and investment management company, secured a €16 million (~$17.87 million) construction bridge financing facility from an international debt fund. The funding will support the development of a portfolio of solar projects totaling 29 MW across Poland.
Capcora, an independent financial advisory firm based in Germany, advised SIG in the transaction. TGS Baltic and Ontier Spain acted as SIG’s legal advisors.
The 25 individual fixed and tracker systems projects, ranging from 1 MWp to 4 MWp, will initially operate on a complete merchant basis. However, SIG retains the option to market the electricity produced through a power purchase agreement in the future. The construction of all 25 projects is expected to be completed by the end of 2024.
“We are pleased to announce that we have secured another bridge financing facility and established a relationship with a new lender. The bridge financing landscape in Poland continues to be dominated by debt funds, making it crucial for us to forge new relationships to secure the necessary funding for the construction of our projects, even in the absence of secured offtake via PPAs, which allows SIG more flexibility in the current selling process of these assets”, says Deividas Varabauskas, CEO at Sun Investment Group.
In June, SIG secured debt financing for a pipeline of mid-to late-stage solar PV projects with a total capacity of 1,970 MW in Poland. An international debt fund entirely subscribed to the funding and will support the development of the projects.
According to Mercom’s 1H and Q2 2024 Solar Funding and M&A report, large-scale solar project funding in 1H 2024 came to $19.9 billion in 117 deals compared to $14.9 billion in 113 deals in 1H 2023.
