Solarpack raises €310 million through its inaugural corporate financing facility
It will be deployed in the construction of new solar photovoltaic plants in the markets where the company operates
Solarpack has closed an ESG-linked syndicated credit facility of EUR310 million with ICO, HSBC, Crédit Agricole CIB (CA-CIB), Natixis CIB, Santander CIB, Société Générale and BBVA. CA-CIB will act as agent bank and HSBC will play the sustainability advisor role.
This euro-denominated facility has an initial term of three years with the possibility of an extension of up to two years. It also includes an additional uncommitted tranche that allows the initial amount to be increased by a maximum of €175 million, subject to each lender consent.
The funds will be used to build new solar photovoltaic plants in markets where the company is present and plans to increase its market share (Spain, United States, Italy, Chile, Peru, Colombia, among others) and will allow Solarpack to further deliver its corporate purpose: to accelerate the transition towards clean and affordable energy for all.
The company currently manages an operating portfolio and pipeline of 11GW and expects to have more than 5GW in operation by 2026.
The structuring of this facility demonstrates Solarpack strong commitment to sustainability in general and to environmental, social, and good governance factors, which are a strategic priority in all of the company's activities. In addition, the company has recently been rated as the world's most sustainable utility according to the Sustainalytics ESG Risk Rating. Solarpack has also recently designed a Green Financing Framework to integrate its sustainability strategy into the company's financing policy. With this line, Solarpack has already qualified as sustainable financing up to €425 million and aims to increase this figure to €1 billion by the end of 2023.
"The successful closing of this first sustainable corporate financing facility is a reflection of the syndicate lenders' confidence in the management team's ability to execute the company's ambitious growth plan. Furthermore, the sustainability criteria included in the structure confirms Solarpack firm commitment to the highest standards of sustainability, corporate governance, and environmental improvement" said Luis Alvargonzalez, Solarpack CFO.
The deal's advisors were Clifford Chance for Solarpack and Latham & Watkins for the financing entities.