IKAV closes 65 million euro debt financing deal backed by a 767MW wind and photovoltaic portfolio in northern Spain.
IKAV Group and the Spanish IPP Forestalia have entered into a pre-construction loan agreement up to the amount of 65 million euros to support the acquisition of main equipment and other construction related expenditures associated with twelve wind farms and seven PV plants, with a total installed capacity of 767MW that are currently in late stage of development. The projects are located in Aragón and expected to reach ready to build status between Q3 2023 and Q2 2024. IKAV and Forestalia have also agreed on a framework to finance the construction of most of this portfolio with long term debt instruments.
Leading the project for IKAV was Manuel Gámez, Investment Director of IKAV Energy Spain, who said: “We are delighted to support the growth strategy of Forestalia, one of the leading IPPs in Spain. Our innovative financing solution fills the gap that Sponsors such as Forestalia bear during the latest stages of development, reducing the supply uncertainty and speeding up the construction of the projects. The Iberian market represents a sizeable opportunity and we plan to scale up the platform with new similar partnerships”.
Forestalia is one of the main players in the renewable energy sector in Spain. Currently, more than 2,000 megawatts (MW) of wind, photovoltaic and biomass generation are in operation, driven and developed by Forestalia, which also has a portfolio of projects in the pipeline of more than 6,000 MW. Forestalia is strengthening its own portfolio, which in the coming years will be at least 1.2 gigawatts for direct operation.
“We are more than happy to implement this loan that really will help to proceed with the construction phase of the portfolio saving time and taking opportunities of advanced supply of equipment and services”, says Carlos Reyero, General Manager of Forestalia.
About IKAV
IKAV is an international asset management group, founded in 2010 with headquarters in Germany and local offices in Luxembourg, Italy, Spain, Portugal, USA and France. It offers institutional investors investment solutions covering a wide range of infrastructure energy assets, including solar energy, concentrated solar power, wind energy, energy efficiency, geothermal energy, thermal power plants and upstream. IKAV is a buy & hold investor with a vertically integrated business model to optimize its investment portfolio and align its assets with the global net zero strategy over the coming decades.