Acofi Gestion is providing finance to Greenalia for a portfolio of five wind farms in Spain with a total capacity of 74MW via the former’s Predirec EnR 2 debt fund.
The €21m mezzanine loan is backed by unsubsidised and non-contracted assets located in Spain.
This loan will finance part of the equity injected to build Greenalia’s Eolo MOC I portfolio.
This consists of five onshore wind farms located in Galicia.
One project benefits from a state-guaranteed floor price, while energy produced by the remainder will be sold entirely on the wholesale electricity market.
Thanks to the loan, which is part of a long-term partnership approach, Greenalia will be able to invest more in new wind projects and thus accelerate the development of its business.
Greenalia chief executive Manuel Garcia said: “For us, the result of this operation with Acofi is very satisfactory, both financially and also in recognition of the way of doing things in Greenalia, where we have a clear roadmap, with a diversified pipeline through which we want to be main actors in one of the biggest challenges we have as society: the energy transition and the care for the planet.”
Philippe Garrel, Head of ACOFI Gestion’s Energy Transition activity: “We are very satisfied by this first transaction in with Greenalia, which is perfectly consistent with the Predirec EnR 2 fund’s aim of supporting industrial players by setting up collateralised financing adapted to the specific needs of each borrower and helping to meet the challenges of energy transition.
“The success of this transaction further strengthens the management team’s determination to be involved in projects exposed to market risk in Europe when production costs are competitive.”