Chat with us, powered by LiveChatItaly: a 264 million euros deal to finance one of the largest solar-plant portfolios signed off - FASI
FASI - Funding Aid Strategies Investments

Italy: a 264 million euros deal to finance one of the largest solar-plant portfolios signed off

|News
10 March 2023

Photo Credit: Pexels The funding signed by EIB, Crédit Agricole CIB, Natixis CIB, and Reden will support up to 26 photovoltaic power plants with a total installed capacity of up to 255 MW to be built across Italy. The operation will contribute to ambitious RepowerEU objectives and Italy’s renewable energy goals.

The European Investment Bank (EIB), Crédit Agricole Corporate and Investment Bank Milan branch (Crédit Agricole CIB), Natixis Corporate and Investment Banking (Natixis CIB) and Reden have closed a project finance operation for 264 million euros to finance one of the largest greenfield photovoltaic portfolios in Italy.

By the first quarter of 2025 all the power plants will be operational and will produce approximately 470 GWh a year of renewable electricity, enough to meet the demand of more than 190 000 Italian households. The photovoltaic portfolio is also expected to prevent approximately 3.3 million tonnes of CO2 emissions over its lifetime, contributing to meeting the EIB’s RePowerEU objectives and Italy’s renewable energy production goals.

Combining incentive tariffs, long-term power purchase agreements and market revenue, the financing is classified as a green loan according to the Loan Market Association Principles. Furthermore, the plants that will be built on industrial land and thus generate contracted revenues for 20 years will benefit from the incentive tariff under Italy’s FER 1 Decree, which is the majority of them.

EIB will provide around 120 million euros of long-term financing. Crédit Agricole CIB and Natixis CIB acted as structuring mandated lead arrangers, bookrunners, hedging banks and green loan coordinators. Natixis CIB also acted as the sole underwriter. Crédit Agricole CIB is the agent bank and Crédit Agricole Italia the account bank. All the plants will be fully owned by the borrower, Reden Development Italy Srl, part of the Reden Solar Group. Reden’s Italian subsidiary will also carry out the construction works and operation and maintenance activities.

;