Israeli developer Enlight Renewable Energy has secured project financing from Spanish banks Banco de Sabadell and Bankia for the 312MW Gecama wind farm in Spain.
The project, scheduled to reach commercial operation in 2022, is expected to generate average annual revenues of €60m.
Enlight said the senior debt provided by the banks, which will account for 50% of the total project cost, is estimated at €320m and is provided as a non-recourse loan.
The money will be repaid over the first 14 years as of commercial operation date, the company said.
Gecama will feature Nordex turbines, with the German manufacturer also providing servicing for 20 years.
Elecnor will construct the civil and electrical infrastructure for the wind farm.
Enlight owns 72% of the project company and will provide €115m, with the rest of the capital being completed by the remaining project partners, Phoenix and Menora Mivtachim.
The agreement enables the project company to sell electricity on a full merchant basis, Enlight said.
Banco Sabadell head of project finance Roger Font said: “It has been an honour and a great opportunity to work with Enlight and the other parties involved in the financing of one of the largest merchant projects in Europe.
“The experience and track record of Enlight has been one of the key success factors in this project as well as the characteristics of the plants which demonstrates that the wind sector is capable of competing with other technologies without any governmental subsidies.”
Bankia Capital Markets head of structured finance Jorg Hahn said: “As a leading bank in financing renewable energy projects, it is a great satisfaction for Bankia having reached an agreement with Enlight to finance the construction, commissioning and operation of one of the largest wind farms in Spain owned by its subsidiary Gecama, which will contribute to improving the energy mix of the country.”
Legal advice to Enlight was provided by Clifford Chance and Cuatrecasas, while ATI Consultants delivered engineering advice and Deloitte financial advice.
Neolas Ingenieria was the development advisory and FRC insurance advisory to the developer.
The lender’s advisors in the funding process were Watson Farley & Williams (legal), DNV GL (technical) and Marsh (insurance).