Valorem has raised fully merchant debt financing, from AIP Management, to fund the construction of its 149MW Matkussaari wind project in Finland.
Matkussaari will be built for a planned total investment of €195m.
The wind farm, located in the region of Ostrobothnia in Finland, will host 27 wind turbines each with a rated capacity of 5.5MW.
The Matkussaari wind farm forms part of the larger Viiati project which also includes the 165MW Kalistanneva wind farm which was sold by Valorem to a Finnish Consortium comprised of Helen Oy and Alandsbanken’s Wind Power Fund.
Together, both wind farms will generate enough power to represents around 1.2% of Finland’s annual electricity consumption.
Matkussaari Wind Farm Oy, the management company of the wind farm, 100% owned by Valorem, has signed a facility agreement providing flexible long-term financing of €135m from AIP Infrastructure 2, managed by AIP Management, and has also secured €10m in VAT funding from OP Bank.
Financing was established on the basis of Matkussaari remaining fully merchant, successfully allowing the company to maintain power price participation upside in a strong power price environment.
This loan has been certified as a Green Loan by Klinkby Enge, ensuring compliance with the Loan Market Association’s (LMA’s) principles.
The wind farm, co-developed by Megatuulli, will be built by Suvic, Valrea, a subsidiary of Valorem and ELTEL.
The works will start in March 2022 with an estimated commissioning in January 2025.
Valorem will also provide long-term technical and commercial management services to the wind farm.