CASE STUDY: “EOLO” · DEBT ADVISORY · RENEWABLES
PPA, Mezzanine and Senior Debt of 74 MW Greenfield on-shore Wind Portfolio
Agere was appointed as exclusive financial advisor to GREENALIA SA. (“Greenalia”) for the project financing of a greenfield wind portfolio in Spain. The aggregate equity disbursement for the portfolio lays over 38M€, while the subsequent project finance debt exceeds 84M€
TRANSACTIONRATIONALE
- Greenalia (ticker “GRN” BM) was awarded in May 2017 auction for 133 MW of wind assets in Spain with zero-floor subsidy, which meant the project was fully exposed to merchant power prices.
PROCESS CONSIDERATIONS
- Greenalia approached the financing of the projects in different phases, adapted to the development stage of each project.
- Several closings within the portfolio, the first took place in August 2019, the second will be in Dec.2020 and, the next one in April 2021.
KEYTAKEAWAYS
- The transaction highlights Agere’s capability to structure complex transactions involving PPA and non-recourse senior and mezzanine project finance debt.
- After 6-months closing a PPA and a fully underwriting debt solution, the lender unexpectedly changed its debt-sizing criteria. Leverage was too low for our client. Agere was uniquely able to rapidly secure, within two month, a solution with another lender, Sabadell.
- An innovative two-tranches debt solution was designed: Tranche A a fully merchant and, Tranche B, disbursement optionally if a PPA structure were closed.
- In addition, a sub-holdCo mezzanine is being closed by the end of 2020, while maximising the leverage for Greenalia.
- Playing a main role in assisting our client and Sabadell in the syndication of the loan: Liberbank, Bankinter, EBN Banco de Negocios, Banco CooperativoEspañol S.A.
SCOPE OFWORK
- Definition of the financing strategy, reaching consensus with Greenalia and, the continuous review of the PPA structuring strategy.
- Conducted a highly competitive bidding process with different PPA off-takers, mezzanine lenders and over 6 banks invited, including EIB.
- Prepared and presented Greenalia to the wider lenders community a proposed valuation, scenario analysis, funding schedule, transaction structure and process.
- Assumed primary point of contact for all interested parties, ensuring timely information flow and due diligence management.
- Assisted in the drafting, negotiation and finalization of final term sheets, PPA agreements and financial agreements.
- Reviewed extensive project materials and permits, and coordination with legal, technical and market lenders’ advisors.
TRANSACTION OVERVIEW
Type: PPA and Debt Advisory
Transaction Value: €84m+
Sector: Wind
Location: Spain 
Deal Close: August 2019
Advisor: 
Client: 
PPA off-taker: Pending
Lenders: 