Nexta Capital is raising debt for a 200 MWp plus solar PV project in Sicily, it is understood.

The UK-based asset manager is developing the 210 MWp Lentini project located across the communities of Catania and Lentini via subsidiary Next Bel Holding, which it owns in a joint venture with Italian developer Belenergia.

It is understood to have begun approaching the lending market regarding the up to EUR 146m debt raise for the circa EUR 194m project over the course of H2 2024.

The EIB is one of the parties to have been approached, with the transaction now “under consideration” by the group, according to a filing. A commercial lender is also forecast to participate in the financing.

The project is seen as a contender to bid for a Fer-X contract in upcoming auctions for the tariff.

Nexta Capital has separately since mid-2023 been raising capital for its Luxembourg-based Nexta Renewable Fund, for which it has a EUR 500m final target.

The vehicle will have a priority focus on Italian ready-to-build onshore wind, solar and biomethane opportunities but will also target deals in Spain, Portugal and Greece.

The fund will source RTB projects from affiliate Nexta vehicles and related joint ventures.

Nexta is currently developing a 1GW-plus project pipeline alongside Octopus Energy’s Octopus Energy Development Partnership in Italy.

The Nexta fund has a call option for an initial batch of capacity developed out of the partnership, it is understood. It will then have a call option on RTB projects on an alternating basis with Octopus after this point.

The vehicle, which has a 12-year fund life plus two one year extensions, will build projects on a merchant and full equity basis, and aims to sign PPAs and refinance assets around two years after they have entered operation.

Nexta Capital declined to comment.

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