Ardian becomes a minority partner in both projects following the agreement signed between Solarpack and the infrastructure fund manager in September.
Solarpack announces the closing of an agreement signed in September 2019 with a renewable asset investment fund managed by Ardian (‘Ardian’) for its entry into the Tacna Solar and Panamericana Solar projects (the ‘Projects’) in Peru. As a result of this transaction, Ardian will hold a 49% share of two Projects that have remarkable recurring revenues, as evidenced since their commissioning at the end of 2012. Solarpack, meanwhile, retains a controlling share in the Projects.
The transaction allows Solarpack to repay a bridge loan raised last year to buy 90.5% of the Projects from Tawa Solar Fund LP and its minority partners. Furthermore, the partnership with Ardian and the cash flows generated by the Projects in 2019 have allowed the financing of a high-value industrial repowering plan and a reordering of operation and maintenance activities, along with USD$9m of cash proceeds for Solarpack since it bought the 90.5%.
The Projects, which were developed and built by Solarpack along with another company in 2012, are located in the south of Peru and boast 49 MW of combined module capacity following Solarpack’s repowering work last year. Both Projects have 13 years remaining on dollar-denominated long-term power purchase agreements with the Peruvian Energy Ministry, which were issued in the first renewable energy resources auction held in Peru, in 2010.
This transaction forms part of Solarpack’s strategy of selectively acquiring operational assets that offer attractive returns and clear opportunities for incremental value creation through operational synergies, knowledge of projects, markets and technology, and proven industrial and financial management skills. Ardian’s investment in the Projects allows Solarpack to adequately balance the funding needed to purchase Tacna Solar and Panamericana Solar with the generation of additional resources to finance its growth plan.
The transaction also builds on an industrial partnership between Solarpack and Ardian that has seen success across various South American projects since 2016. Ardian has ample experience in investing in renewable energy assets for the long term and currently has almost 3 GW of installed capacity.