The European Investment Bank (EIB) has signed an agreement with alternative investment management firm Ben Oldman to provide €100m ($114m) to co-finance solar photovoltaic (PV) and wind energy projects in Spain and Portugal.
Under the agreement, EIB will provide unitranche loans for the development of onshore wind and solar energy farms in these countries over the next two years.
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The initiative is expected to support the creation of around 430MW of renewable energy capacity, equivalent to the annual energy consumption of more than 200,000 households.
EIB vice-president Ricardo Mourinho Félix said: “As the EU climate bank, the EIB is respecting its commitment to the green recovery in Europe by supporting the construction of sustainable infrastructure while also boosting job creation.
“The Spanish and Portuguese markets have huge potential for renewable energy, and the EU bank is pleased to lend all our support to the investments needed to meet objectives on renewable energy generation and decarbonisation of the economy.”
EIB will serve as the lead lender to an investment fund managed by Ben Oldman, which will offer funds to final beneficiaries as senior debt.
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By GlobalDataMost of these loans will be given via special purpose vehicles (SPVs) created for project implementation.
Ben Oldman will hold a stake in the reserved investment fund and subscribe to some of the junior bonds, as well as handle the origination of the loans.
The renewable projects will receive unitranche loans irrespective of power purchase agreements (PPAs) and are intended to help Spain and Portugal meet their renewable energy targets.
The programme is estimated to create 720 direct and indirect jobs during its construction phase.
It aims to originate €200m in six to ten unitranche loans to at least three beneficiary promoters over the next three years.
In July 2020, the EIB agreed to offer a loan to Mytilineos for the construction of an 826MW combined-cycle gas turbine power plant in Greece.
