- The new facilities are part of the Eolo project and will have a power of 74.22MW
- The operation has been structured through a project finance facility with a senior and a junior tranche -mezzanine-
Greenalia has obtained a loan of 84 million euros for the financing of five wind farms with an installed capacity of 74.22 MW.
The installations are included in the Eolo project that Greenalia develops in Galicia and will be fully operational in 2020. Four of them are located in the province of A Coruña and one in Lugo.
The operation has been structured through the project finance facility with a senior and a junior tranche -mezzanine-. Banco Sabadell acts as agent and coordinator in the senior tranche that reaches a value of 61 million euros. The subordinate tranche -mezzanine- has been signed for 22 million euros. Additionally, VAT and guarantee policies have been signed, as well as other instruments required in this type of financing.
In the financial closing, have also participated Watson Farley & Williams as legal advisor and Agere Energy & Infrastructure Partners as financial advisor and it means a key milestone for the fulfillment of the company’s business plan, in particular, of the objectives set for this year.
In addition, as part of the capital structure, Greenalia has signed a bilateral loan with EPC provider (Elecnor S.A.), which will be involved in the Eolo project beyond the execution of the construction works.
Greenalia, which in 2017 became the first European SME to issue a green bond, will begin, in the coming weeks, the process to obtain the Green rating for this financing with Standard & Poor’s.
Currently, Greenalia is already building the Miñón wind farm in the province of A Coruña and Ourol in Lugo, with an investment of 28 and 26 million euros respectively. The remaining installations covered by this financing are: Alto de Croa I (7 MW), Alto de Croa II (10.4 MW) and Monte Tourado (10.4 MW).The Eolo project includes three additional wind farms whose financial closing is planned for the 4Q 2019: Campelo (40.5 MW), Bustelo (45 MW) and Monte Toural (18 MW).
The company does not rule out joining any additional project with the goal of exceeding the 200 MW of wind power installed by the end of 2020, which would mean, -together with the 50MW the Curtis-Teixeiro biomass plant-, an installed capacity over 250MW by the end of next year meaning an energy production exceeding 1GWh/year.The wind developments that Greenalia is carrying out in Galicia will generate, in addition to a positive environmental, economic and social benefits, promoting job creation and growth in the areas where the projects are located. The start-up of these instalations will involve the generation of 750 jobs during the construction phase.