Spanish renewables firm Grenergy Renovables SL (BME:GRE) said on Wednesday that it has closed financing for its nearly-completed 150-MWp Belinchon solar power project in Spain.
German lender Norddeutsche Landesbank Girozentrale (NORD/LB) and Spain’s Bankinter will provide a total of EUR 89.5 million (USD 96.2m) plus additional credit lines, with each bank assuming half of the senior debt, or around EUR 44.7 million. The project finance includes debt financing for a term of the construction plus 19 years, Grenergy said in a bourse filing.
The loan carries a green label in line with the Green Loan Principles and has been independently verified for alignment by G-Advisory, according to the developer.
The Belinchon project is located in the namesake municipality in Cuenca province, east-central Spain. The 300-hectare-plus (741.3 acres) solar farm is under construction and close to connection.
Grenergy signed a 12-year power purchase agreement (PPA) with an unnamed Iberian off-taker to deliver part of the solar farm’s output, as announced in September 2021. Under the terms at the time, power delivery was supposed to commence in March 2023.
On Wednesday, Grenergy said that the PPA would be activated in January 2025. Until then, Belinchon’s electricity will be sold to the market.
(EUR 1.0 = USD 1.08)
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