Renewables firm Solarpack, based in Spain, has finalized a senior financing package worth USD 176.6 million (EUR 162.6m) to support its San Martin solar photovoltaic project in Peru.
The financing, provided by lenders BBVA, BNP Paribas, Credit Agricole Corporate and Investment Bank, and Natixis Corporate & Investment Banking, represents a milestone as the first renewable energy project in Peru to secure financing based on a power purchase agreement (PPA) between private parties, according to Solarpack.
In addition to the project finance, Solarpack has closed a revolving credit facility with BBVA to access up to USD 19 million for working capital requirements during the construction phase of the San Martin project.
The San Martin solar farm, with a capacity of nearly 300 MW, is currently under construction in the district of La Joya, Arequipa province. Once operational, it is expected to generate over 819 GWh of electricity annually.
The project is supported by a PPA with Peruvian generation company Kallpa Generacion, which has committed to off-take all of the San Martin project's production.
Solarpack's portfolio in Peru currently includes 343 MW of renewable energy projects in operation and under construction.
