Forestalia Secures Pre-Construction Financing for 767 MW Renewables

• Forestalia secures EUR 65 million from IKAV Group to construct 19 wind and solar projects in Aragon, Spain. Banco de Sabadell structures pre-construction debt for major equipment and construction expenses. Forestalia targets 1.2GW of direct operations in the next few years.

Spanish renewables developer Forestalia has secured EUR 65 million (USD 73m) of pre-construction debt from IKAV Group to finance a portfolio of 12 wind and seven solar photovoltaic (PV) projects in the northern province of Aragon. The debt, structured by Banco de Sabadell, will be used to purchase major equipment and cover construction-related expenses. IKAV has also agreed to provide funds for installing most of the capacity under long-term debt instruments. Forestalia is aiming to have at least 1.2 GW of assets in its direct operation in the next few years and plans to scale up its platform with similar partnerships.

How Did Forestalia Secure EUR 65M for Renewable Projects?

• Forestalia has secured a portfolio of 12 wind and seven solar photovoltaic (PV) projects in the northern province of Aragon with EUR 65 million of pre-construction debt from IKAV Group.
• The debt, structured by Banco de Sabadell, will be used to purchase major equipment and cover construction-related expenses.
• IKAV has agreed to provide funds for installing most of the capacity under long-term debt instruments.
• Forestalia is aiming to have at least 1.2 GW of assets in its direct operation in the next few years and plans to scale up its platform with similar partnerships.
• The company has been able to secure the EUR 65 million due to its established track record in developing renewable energy projects, its strong relationships with investors and lenders, and its experienced team of professionals.
• Forestalia has also partnered with IKAV Group to create an innovative structure for financing large-scale renewable energy projects in Spain.
• The partnership between Forestalia and IKAV Group has enabled the former to finance the acquisition and construction of large-scale renewable energy projects, allowing the company to quickly and efficiently launch its projects.