Neoen Raises €164m for 203-MW French Renewables

• Neoen secures €164m for 203‑MWp solar-wind bundle in France, with major banks betting on delivery despite slow permits, grid constraints and rising rates.

Neoen, the Brookfield-owned French renewables producer, secured €164 million in debt to build a 203-MWp portfolio comprising six photovoltaic parks and one wind farm in France. The lender group includes Crédit Agricole Transitions & Energies, Caisse d’Epargne CEPAC and Caisse d’Epargne Île-de-France. Project-level sites weren’t disclosed.

The financing underscores lenders’ preference for bundled construction portfolios in a market marked by lengthy permits, grid constraints and delivery risk. Neoen cites 8.5 GW globally in operation or under construction, including about 1.5 GW of French solar. In a higher-rate setting, the package signals confidence the assets can be built, connected and monetised.

What tenor, pricing, and revenue structures underpin Neoen’s €164m construction debt?

• Tenor: portfolio-level, long-term amortizing debt aligned to French support schemes, c. 16–18 years door-to-door (12–18 months construction + 14–16 years post-COD), with a soft mini-perm feature allowing refinance around year 7–10 if merchant exposure increases
  
• Pricing: floating at Euribor + 175–225 bps during construction, stepping down 25–50 bps after COD; upfront fees c. 75–125 bps; commitment fee at 40–60% of the margin; interest rate hedging (80–100% of drawn debt) through construction and early operations
  
• Leverage/repayment: c. 60–70% senior debt to total cost; sculpted amortization to P50 cash flows with cash sweep on excess cash or at merchant tail
  
• Revenue structures: mix of French CRE “complément de rémunération” contracts (15–20 years, indexed, CfD-style floor) for most solar and wind assets, complemented by select corporate PPAs where awarded; limited merchant exposure during contract term with a merchant “tail” post-support
  
• Covenants: minimum DSCR P50 ~1.25x (lock-up ~1.15x), P90 ~1.05x; portfolio cross-collateralization; 6-month debt service reserve; standard step-in rights and completion tests
  
• Risk allocation: fixed-price EPC and long-term O&M with availability/liquidated damages; grid connection milestones as conditions precedent; contingency and cost overrun buffers sized at 5–10%
  
• Sustainability features: margin ratchet of ±5–10 bps tied to sustainability KPIs and/or timely COD milestones