EUROPE: Debt raise in process for 400 MW cross-border solar portfolio

Amarenco is raising debt for a circa 400 MW European solar portfolio, with financial close targeted by late summer, it is understood.

The Arjun Infrastructure Partners, Tikehau Capital and IDIA Investissement-backed IPP launched the transaction earlier in 2024 and is believed to be looking to raise in the region of EUR 300m - EUR 400m in long-term debt to back the construction of the Spanish, Portuguese, Irish and Austrian projects, which are a mix of late-stage development, under-construction and operational assets.

A portion of the portfolio’s power will be sold under 10-year PPAs, with another portion sold on a merchant basis.

Amarenco is believed to be set to confirm up to four lenders on the transaction in the first part of June, with the debt tenor forecast to stretch up to 20 years.

Senior debt for PPA-backed solar PV across the EU countries in which the portfolio is located is currently pricing at just under 200bps plus Euribor, it is understood.

Amarenco is understood to be looking to reach financial close for a similar circa 300 MW portfolio of French solar PV projects in Q4.

ING and Rabobank are among the lending parties to have been connected to the financing process for the European part of the portfolio.

Amarenco’s Spanish portfolio is spearheaded by a 204 MW project in Castile and Leon which it acquired from Hanwha Energy in Q1 2023.

Perella Weinberg Partners (financial) and Linklaters (legal) are advising Amarenco on the transaction.

*This story was originally published exclusively for NPM Europe subscribers.

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