Sonnedix, the global solar independent power producer, has finalized a €500 million loan facility aimed at financing the construction of its burgeoning renewable development pipeline in Europe and the UK.
The non-recourse facility provides Sonnedix with increased flexibility and efficiency in clustering, contracting, and constructing its renewable plant pipeline, facilitating a more streamlined approach to its development projects.
The multicurrency facility, which can be drawn in euros or pounds sterling, encompasses a €450 million capital expenditure facility and a €50 million letter of credit facility. Six commercial lenders, including BBVA, CIBC, NatWest, Rabobank, Banco Sabadell, and Santander Corporate & Investment Banking (Santander CIB), served as mandated lead arrangers and hedging banks, with Santander CIB also acting as agent for the facilities.
Sonnedix plans to utilize the loan to finance renewable energy projects across Europe, with a specific focus on Spain, Italy, and the UK. This initiative builds on Sonnedix's ongoing commitment to expanding its renewable capacity and accelerating the energy transition.
Axel Thiemann, CEO of Sonnedix, expressed confidence in the quality of their banking relationships, highlighting that the loan facility “removes barriers to deployment by unlocking more efficient and flexible financing approaches as we scale our renewable capacity in Europe.”
Daniel Machuca, Sonnedix's Head of Project Finance in Europe, emphasized the innovative nature of the financing tool, stating, “This market-leading and innovative financing tool will complement Sonnedix's project financing and corporate financing capabilities to help us construct our growing, greenfield renewables pipeline at speed and scale.”
Sonnedix's diverse debt portfolio includes the recent closure of sustainability-linked corporate facilities exceeding €600 million earlier in 2023. The transaction involved legal advisory support from Watson Farley Williams for Sonnedix and Eversheds Sutherland for the lenders.
