Business
Spanish Solar PV Debt Financing
Spanish Solar PV Debt Financing.
About this update from Aquila European Renewables Plc Registered
[{"type":"text","content":"\n\n8 January 2024\n \nAquila European Renewables plc\n \nSpanish Solar PV Debt Financing\n \nAquila European Renewables plc (\"AER\" or \"the Company\"), the London-listed investment company advised by Aquila Capital Investmentgesellschaft mbH (\"Investment Adviser\"), today announces that it has entered into a EUR 50 million[1], five-year non-recourse debt facility (\"Debt Facility\") with ING Bank N.V. Sucursal en España. The Debt Facility is secured by AER's wholly owned Spanish solar PV portfolio, which consists of 180 MWp of unlevered operating assets supported by long-term contracted Power Purchase Agreements.\n \nThe Debt Facility implies a conservative gearing level of approximately 26% for the Spanish solar PV portfolio, based on fair values as at 30 September 2023. The Company has been able to secure the loan at attractive terms, with an all-in interest rate below the existing revolving credit facility (\"RCF\"). Pricing terms of the Debt Facility remain confidential. 90% of the Debt Facility is hedged via an interest rate swap over the life of the loan. The Debt Facility is also partially amortising, with a balloon repayment at maturity. The Debt Facility also benefits from an accordion option (EUR 18 million), as well as two twelve-month extension options, both of which are subject to lender consent.\n \nThe Company intends to use the net proceeds from the Debt Facility to repay the RCF, resulting in available capacity under the RCF of approximately EUR 70 million (current facility limit: EUR 100 million). As a result, the Company's overall gearing level remains unchanged at approximately 34% of its Gross Asset Value, as at 30 September 2023. The undrawn RCF capacity provides significant flexibility for the Company going forward when considering future capital allocation decisions, which may include the continuation of the share buyback programme.\n \nAs announced in May 2023, this debt financing is one of a number of initiatives identified by the Board to assist in securing recognition of the value inherent in the portfolio. Further, the Board will continue to consult with shareholders and, as announced on 22 December 2023, is considering broader options for the future of the Company.\n \nIan Nolan, Chairman of AER, commented: \"We are pleased to have secured the debt fi...