The European Investment Bank (EIB) has signed a agreement with alternative investment management firm Ben Oldman to provide €100 million ($114 million) to co-finance solar photovoltaic (PV) and wind projects in Spain and Portugal.
Under this agreement, the EIB will provide unitranche loans for the development of onshore wind and solar farms in these countries over the next two years.
The initiative is expected to support the creation of approximately 430 MW of renewable energy capacity, equivalent to the annual energy consumption of more than 200,000 homes.
EIB Vice-President Ricardo Mourinho Félix said: “As the EU’s climate bank, the EIB is delivering on its commitment to Europe’s green recovery by supporting the construction of sustainable infrastructure while boosting job creation.
“The Spanish and Portuguese markets have enormous potential for renewable energy, and the EU bank is happy to provide its full support for the investments needed to achieve the objectives of renewable energy production and decarbonisation of the economy. .”
The EIB will serve as lead lender to an investment fund managed by Ben Oldman, which will offer funds to end recipients in the form of senior debt.
Most of these loans will be provided through special purpose vehicles (SPVs) created for the implementation of the project.
Ben Oldman will hold a stake in the reserved investment fund and will underwrite some of the junior bonds, as well as manage loan origination.
The renewable projects will receive unitranche loans independent of power purchase agreements (PPAs) and are intended to help Spain and Portugal meet their renewable energy targets.
It is estimated that the program will create 720 direct and indirect jobs during its construction phase.
It aims to originate €200 million in six to ten unitranche loans to at least three beneficiary promoters over the next three years.
In July 2020, the EIB agreed to provide a loan to Mytilineos for the construction of an 826 MW combined cycle gas turbine power plant in Greece.