Spanish renewables developer and operator Grenergy Renovables has successfully secured a green loan of USD 157 million (EUR 146.9m) from Banco Santander SA to fund its expansion in Latin America. The financing, guaranteed by the Spanish export credit insurance agency CESCE, will be utilized to advance renewable energy projects, with a specific focus on battery storage.
The loan, featuring a grace period of two years, carries an interest rate tied to the Secured Overnight Financing Rate (SOFR) plus 1.8%. It has an eight-year maturity.
In a strategic move, Grenergy has also entered into an interest rate swap covering 100% of the principal amount of the loan. The cost of this interest rate swap is set below 3.0%, with the potential for further reductions based on the company meeting specified environmental, social, and governance (ESG) requirements.
Grenergy articulated its intention to allocate resources towards driving growth, emphasizing a close connection to the evolving landscape of energy storage. The company plans to provide additional insights into its strategic direction during its inaugural Capital Markets Day scheduled for November 21.
This financial arrangement underscores Grenergy's commitment to expanding its renewable energy footprint in Latin America, aligning with its vision for sustainable and innovative solutions in the clean energy sector.
