Business Case Forestalia


PPA and Project Finance of 306 MW Greenfield on-shore Wind Portfolio

Agere was appointed as exclusive financial advisor to Forestalia Renovables SA (“Forestalia”) for the project financing of agreenfield wind portfolio in Spain. The aggregate equity disbursement for the portfolio lays over 140M€, while the subsequent project finance debt exceeds 170M€


  • Forestalia was awarded in 2016 auction for 306 MW of wind  assets in Spain with zero subsidy, which meant the project was fully exposed to merchant power prices.
  • After the crisis 2007-14, banks in Spain were scarce and reluctant to finance merchant projects.


  • The project required an appropriate long-term PPA off-taker partner and a project finance with a high leverage for the project construction.
  • Forestalia approached the financing of the portfolio in two phases, adapted to the development stage of each project.
  • A single financial close took place in April 2018, Phase 1 was disbursed immediately and, Phase 2 had several CP and a long stop date.


  • The transaction highlights Agere’s capability to structure the first complex transaction involving PPA and non-recourse project finance debt in Spain ever.
  • PPA was a tailor-made floor instrument with a fix premium.
  • Agere has a deep knowledge of the renewable energy market lenders including EIB.
  • The transaction involved 3-parties complex negotiation: four banks, PPA off-taker and four equity partners (Forestalia, Engie, GE and Mirova)
  • Agere helped to structure a multi-constructing instead of a traditional and more expensive EPC agreement.


  • Definition of the financing strategy, reaching consensus with Forestalia and, the continuous review of the PPA structuring strategy.
  • Conducted a highly competitive bidding process with different PPA off-takers and over 14 banks invited.
  • Reviewed extensive project materials  and permits, and coordination with legal, technical and market lenders’ advisors.
  • Prepared in short order different teasers, process letters and NDAs for distribution to lenders and PPA off-takers.
  • Prepared and presented Alfanar to the wider lenders community a proposed valuation, scenario analysis, funding schedule, transaction structure and process.
  • Assisted in the drafting, negotiation and finalization of final term sheets, PPA agreements and financial agreements.


Type: PPA and DebtAdvisory

Transaction Value: €170m+

Sector: Wind

Location:  Spain

Deal Close:   April 2018



PPA off-taker: