Prime announces EUR 106m in financing for MKM projects

Prime Capital AG has arranged EUR 106 million (USD 125.6m) of junior debt financing for a 579-MW solar project portfolio of independent power producer MKM Invest Group.

Asset manager and financial services provider Prime Capital said Monday the portfolio includes 367 MW of projects in Germany, 108 MW in Spain and 104 MW in France. Some of the projects in Germany and all of the projects in France are backed by feed-in tariffs (FiTs), while the other projects in Germany and all in Spain have power purchase agreements (PPAs) in place.

Accounts managed by Prime Capital provided the financing, while construction services firm Enerparc AG supported the fundraising on behalf of the sponsor. Enerparc will be in charge of the assets’ long-term management and operation and maintenance.

„This transaction raises a significant amount of liquidity and will provide capital for expanding the IPP presence of MKM Invest Group. It will also allow ENERPARC to pursue more project opportunities for MKM Invest Group and to accelerate its European growth strategy” said Enerparc chief executive Christoph Koeppen.

MKM Invest issued five individual bonds in a private placement as part of the financing transaction, touted as one of the largest mezzanine financings in Europe to date. The bonds are cross-collateralised by 94 operational or under-construction solar projects.

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