Europe's SOLEK Shuts $379 Million Funding for Chile Solar Projects

Jun 1, 2023 10:13 AM ET
  • SOLEK currently possesses a portfolio of about 284MWdc in Chile.
  • It likewise revealed entrance in the US Exclusive Placement market (USPP) with issuance of bonds worth $178 million.

European renewable resource firm SOLEK has closed a $379 million funding for its portfolio in Chile, consisting of solar photovoltaic utility-scale as well as PMGD (Small Means of Distributed Generation projects in chile). The solar energy projects will turn up in the Central Region.

SOLEK declares to be a fast-growing company in the renewable energy sector. It presently owns a portfolio of regarding 284 MWdc in Chile as well as more than 400 MW of projects in advancement stage in Latin America.

The extensive financing, as per the official declaration of SOLEK, makes up a $178 million elderly private placement, $75 million mezzanine, $55 million PMGD bridge-loan facility, $37 million utility-scale bridge loan, $19 million LC Facility, and also $15 million VAT line.

SOLEK held that BNP Paribas as well as Natixis acted as placement agents, arrangers and also lending institutions. BCI and also Scotiabank Chile functioned as representatives and also lending institutions on neighborhood facilities.

Entery in United States Bond Market

SOLEK introduced that it has actually forayed right into the major USA Private Placement market (USPP) recently. It is entering this new market with a 20-year bond issuance worth $178 million. SOLEK stated that the deal had strong need from investors.

" Thanks to the large opportunities that the renewable energy industry supplies today, SOLEK has been experiencing a duration of vibrant development that implicates funding demands. We needed to satisfy rigorous certification standards to access funding on the USPP market. This versatile financing will certainly permit us to concentrate on our PV projects and also additional development," claimed Zdeněk Sobotka, owner and chief executive officer of the SOLEK Group.

Companies going into the USPP market commonly provide long-term bonds. The company's USPP bonds have an amortizing repayment schedule with a maturation of two decades, which aligns the financial debt profile to the life of the underlying financial investment. The earnings from the USPP bonds will certainly be made use of largely to fund the expansion plans of SOLEK and also to re-finance existing financial obligation.

SOLEK and Its Expanding Portfolio

SOLEK has a lot of its renewable resource company constrained to Europe and Latin America. Given that 2010, SOLEK has attached an overall of 53 PV solar projects. Of these, 18 remain in Europe as well as 35 in Chile. The Group has currently greater than 38 renewable energy projects that will certainly be integrated in Chile in 2023 as well as 2024.

The complete set up capacity targeted by the end of 2023 is 400 MW worldwide, a lot of them in Latin America. In Europe, SOLEK has solar projects with a complete capacity of 1.4 GW in the pipeline. Its projects in Romania as well as Greece go to the most advanced stage of growth and are intended to be linked next year.

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