Greenalia S.A. has announced that it has formalised a project financing agreement for the Eolo Project, which involves the development of eight wind farms totaling up to 185 MW in Galicia, a region of north-west Spain.
Banco Santander S.A. has agreed to underwrite a senior loan for a maximum amount of up to EUR156 million (US$178.8 million), subject to the satisfactory result of the different due diligence processes and signing of all the necessary legal documentation; as well as the formalization of a power purchase agreement (PPA) currently in negotiation.
The bank will act as Mandated Lead Arranger, Bookrunner and Underwriter, as well as Green Loan Global Coordinator, as the loan will be qualified a Green Loan by an external agency.
Greenalia was awarded the capacity for the Eolo project in July 2017. Under the terms of the auction, the wind farms must be online before the end of this year.
Construction will require an investment of EUR185 million (US$212.0 million), meaning that the agreement with Santander brings the project close to financial close. Greenalia has not disclosed when financial close is scheduled to take place.
Greenalia estimates that it will earn over EUR1 billion from energy sales over the 25-year PPA period.