EIB providing car loans to speed up release of 430MW of renewables in Spain as well as Portugal
- The European Investment Bank (EIB) will certainly support the addition of 430MW of solar PV as well as wind in Spain and also Portugal with a EUR100 million (US$ 114 million) financing offer.
Under what it calls an "cutting-edge alliance", the bank will certainly serve as the lead lender to a fund managed by different investment manager Ben Oldman. This will after that lend the funds as swing loan to final recipients as senior debt, typically using unique objective automobiles established to accomplish the projects.
The EIB, which is the European Union's financing arm, stated swing loan cover a financing void faced by medium-sized marketers, providing accessibility to the funds they need to relocate from the ready-to-build stage to the operational stage, increasing project application.
These projects will not require power acquisition agreements to get unitranche financings, which combine 2 tranches of financing (elderly and junior) in a single car loan.
The car loans will certainly be financed in equal components by junior bonds subscribed by investors (up to EUR100 million) and by the elderly loan supplied by the EIB (as much as EUR100 million).
The dedication complies with the EIB offering oil as well as gas business Galp with lendings last year to support the building and construction of around 2.1 GWp of solar PV projects in Spain and also Portugal.
Last October, during a meeting to review soaring energy rates, the European Council contacted the EIB to examine exactly how to quicken investments in the energy change to minimize the risk of future power rate dilemmas.