Project Finance

Agere was appointed as exclusive financial advisor to Ingenostrum S.L. (“Ingenostrum”) for the structuring of a project finance, offtake agreement and mezzanine debt of a greenfield PV portfolio throughout Spain. The total debt for the Project Finance is c. 20 M€.

TRANSACTION RATIONALE

• Ingenostrum has been developing these projects located throughout Spain since 2021.
• Banks have been reluctant to finance fully merchant projects, as a consequence of power price zero and non favorable weather conditions for PV financing.

PROCESS CONSIDERATIONS

• The portfolio required a project finance with a bank that would be willing to initially fund fully merchant.
• Ingenostrum will close a PPA before the portfolio reaches complete COD, having negotiated a cure period of two years after COD.
• Financial close took place December 20th, 2024, with first disbursement scheduled in January 2025.

KEY TAKEAWAYS

• The transaction highlights Agere’s capability to structure a favorable deal during sub-optimal market conditions.
• Agere has deep knowledge of the renewable energy market lenders and timings.
• The deal highlights Agere’s ability to creatively craft a financing structure, unique to the project’s needs.
• Emphasizes Agere’s continued alignment with ESG goals and the financing of sustainable projects.
• Agere’s financial model was used to model 22 different projects simultaneously.
• Coordinated with two legal advisors.

SCOPE OF WORK

• Reviewal of extensive projects materials and permits, and coordination with the lender’s legal, technical and insurance advisors.
• Constructed and managed the VDR, assuring an efficient transfer of information for all the parties involved.
• Execution of the first debt disbursement of the portfolio.
• Preparation in short order different teasers, process letters and NDAs for distribution to lenders and PPA off-takers.
• Preparation and presentation of a proposed valuation, scenario analysis, funding schedule, transaction structure and process.
• Assistance in the negotiation and closing of final term sheets and financial agreements.
• Preparation of reports for the Board of Directors and the investors during the whole financing process.

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