An unnamed developer has successfully secured mezzanine financing from a multi-investor debt fund managed by Prime Capital AG to bolster the realization of an 80-megawatt peak (MWp) solar photovoltaic (PV) project in Brandenburg, Germany.
The announcement, made on Monday by Frankfurt-based independent financial advisory firm Capcora, which acted as the exclusive financial advisor for the transaction, heralds a significant milestone in the project's development.
The junior debt, totaling approximately EUR 11 million (USD 11.8 million), will be allocated towards covering late-stage development and construction costs of the project. Notably, this injection of funds aims to optimize the procurement process, particularly in acquiring long-lead items critical to project advancement.
Bernhard Hofmann, director at Capcora, emphasized the groundbreaking nature of this financing arrangement within the German solar market. He highlighted its role in addressing liquidity challenges prevalent in the industry, expressing satisfaction in contributing to solutions within the domestic market.
Construction activities for the solar venture are slated to commence in the second quarter of 2024, with commercial operations earmarked for April 2025. Further arrangements for senior financing are expected to materialize as construction progresses.
The financing for this transaction originates from the Prime Sustainable Infrastructure Debt Fund (PSIDEF), which is presently in the fundraising stage, targeting second-close investors.
