Sonnedix has signed a €500m loan facility to finance the construction of its renewable development pipeline in Europe and the UK.
The new, non-recourse facility allows Sonnedix to cluster, contract and construct its pipeline of renewable plants more efficiently and flexibly, the developer said.
The €500m multicurrency facility can be drawn in euros or pounds sterling.
It includes a €450m capital expenditure facility and a €50m letter of credit facility.
The loan will be used to finance renewable energy projects in Europe, particularly Spain, Italy and the UK.
The loan has been provided by six commercial lenders acting as mandated lead arrangers and hedging banks: BBVA, CIBC, NatWest, Rabobank, Banco Sabadell, and Santander Corporate & Investment Banking (Santander CIB), which also acted as agent for the facilities.
This loan adds to Sonnedix’s debt portfolio, including the closing of more than €600m of sustainability-linked corporate facilities earlier in 2023.
Sonnedix’s chief executive Axel Thiemann said: “This loan facility, which showcases the quality and strength of our banking relationships, removes barriers to deployment by unlocking more efficient and flexible financing approaches as we scale our renewable capacity in Europe.
“Demand for new renewable capacity continues to grow rapidly and this kind of innovation is a good example of our customer-focused approach to accelerating the energy transition.”
Sonnedix’s head of project finance in Europe, Daniel Machuca, said: “This market-leading and innovative financing tool will complement Sonnedix’s project financing and corporate financing capabilities to help us construct our growing, greenfield renewables pipeline at speed and scale.
“It demonstrates that Sonnedixis a trusted and reliable partner to key financing stakeholders as we work together to evolve the terms around how critical renewable infrastructure is funded.”
On the transaction, Sonnedix was advised by Watson Farley Williams (legal and tax) and the lenders by Eversheds Sutherland (legal).