Encavis locks debt for 105-MWp Dutch solar duo

German solar and wind farm operator Encavis AG (ETR:ECV) has sealed a debt financing deal with Dutch Rabobank to fund a portfolio of solar parks in the Netherlands totalling 105 MWp.

The Dutch lender has extended non-recourse project financing of around EUR 32 million (USD 31.3m) to Encavis, the German developer said on Thursday. It will allocate the fresh funds for the 34-MW Svinningegarden solar park in the northwest of Zealand and the 71-MWp Rodby Fjord plant in the southwest of the island.

The credit facility expires on June 30, 2040. Its main component is a term facility fully secured by means of an interest rate swap and a cross-currency swap over the entire term of the contract. The financing was structured and arranged internally by Encavis.

Commenting on the transaction, Encavis’ CFO Christoph Husmann noted that the deal provides the firm with additional resources for further investments that will support its growth strategy.

Encavis bought the duo of solar parks at the end of last year from developer European Energy A/S. Both of them generate electricity under long-term power purchase agreements (PPAs) with “well-known technology companies.” The Rodby Fjord photovoltaic (PV) farm also has in place a feed-in tariff (FiT) contract with the government for 20 years. The Svinningegarden facility was built without state subsidies.

(EUR 1.0 = USD 0.979)

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