FINANCING: MaxSolar launches debt raise for 600 MW German solaR portfolio
MaxSolar has begun a debt raise process for an up to 2 GW German solar PV portfolio, with the aim of concluding the financing of an initial tranche of assets over the next few months, it is understood.
The Traunstein-headquartered company, which is owned by Nature Infrastructure Capital (65%) and Greenvolt (35%), in summer 2023 raised a EUR 410m subordinated holdco debt package from Infranity, I Squared Capital, and Rivage Investment to support the construction of a multi-GW solar PV portfolio across Germany and Austria over the coming years, with that facility to be tapped as equity at the project level.
It is now also stepping up a project financing process for an initial up to 600 MW tranche of assets, with a further up to 1.4 GW portfolio of assets to follow at a later date, and is being advised on the process by Centrus Advisors (financial), according to market sources.
The group began approaching lenders over the financing of the up to 600 MW portfolio in February, with the aim of ultimately securing EUR 160m - EUR 300m in long-term senior debt, and is believed to be looking to conclude the deal in the summer.
The portfolio is understood to comprise six-to-eight separate projects, which will start to reach ready-to-build progressively from July 2024 onwards.
One of the plants in the portfolio is understood to have secured a long-term PPA, while the remaining assets are currently uncontracted. However, most of the schemes have also secured long-term tariffs in EEG tenders.
Project finance for German solar PV projects with either a 20-year EEG tariff or PPA with an investment grade counterparty is believed to currently be pricing in the mid-to-high 100bps plus Euribor range, while debt for merchant schemes would be envisaged to price at 200bps plus Euribor or higher.
10-year pay-as-produced PPA prices in Germany have fallen sharply in recent quarters as wholesale prices have come down.
Generators were able to secure PPAs in the region of EUR 100/MWh 12-15 months ago, whereas now utilities are making lowball PPA offers in the mid EUR 30/MWhs range while corporates are typically offering prices in the EUR 40s/MWh - EUR 50s/MWh range, according to market sources.
*This story was originally published exclusively for NPM Europe subscribers last month.
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