Encavis refinances 41.7- MWp Italian solar portfolio
Solar system in southern Italy. Author: Richard Allaway. License: Creative Commons, Attribution 2.0 Generic.
German wind and solar operator Encavis AG (ETR:ECV) has refinanced a 41.7- MWp portfolio consisting of 21 ground-mounted photovoltaic (PV) power plants situated across Italy.
The company said today it has closed an EUR-88-million (USD 102m) non-recourse project financing to refinance the assets, benefiting from the current low-interest environment and the positive trends in the debt market for PV plants.
The facilities in the portfolio have been operational since 2011 and are set to receive feed-in tariffs for another about 10 years.
The financing was secured from a group of four banks, including ABN AMRO Bank NV, Bankinter SA, Bayerische Landesbank and Societe Generale. It comprises an EUR-81.4-million term loan, as well as a debt service reserve facility of EUR 6.1 million and a letter of credit facility of EUR 500,000.
As with a refinancing deal for a 29.1-MW Italian portfolio in July 2020, the new transaction was structured, arranged and managed by Encavis' inhouse project finance team.