Project Finance Brief: Queequeg Secures Funding for 500 MW of Solar Portfolio in the UK

From: Mercom Capital Group
Queequeg Renewables (QQR), a solar project developer, has secured equity funding for a 500 MW solar project portfolio across the UK through a joint venture with Energy Transition Partners (ETP), a private equity investment firm. The two companies have formed a strategic partnership to co-develop the ready-to-build ground-mounted solar projects. The ETP-QQR Energy Ltd venture will fully fund the portfolio in England, Scotland, and Wales. The first tranche of the projects totaling 200 MW is expected to enter the planning stage while remaining in late 2022.
U.S.-based large-scale renewable energy project developer Intersect Power has obtained $2.6 billion in financing commitments to support the construction and operation of six projects with 2.2 GW of solar and 1.4 GWh of storage capacity. The transaction covers construction financing, tax equity, land financing, and portfolio level term debt with industry-leading partners. The portfolio includes Athos III, Oberon I and II in California, and Radian, Lumina I and II in Texas. All six projects are expected to be operational by 2023. Intersect Power said it had secured $1.4 billion of portfolio level, term debt funding from HPS Investment Partners and co-investors, along with existing Intersect investors CarVal Investors, Generate and Climate Adaptive Infrastructure. It also agreed on $800 million in construction financing led by co-coordinating lead arrangers MUFG and Santander Bank.
Sonnedix Japan, on behalf of Sonnedix, an independent solar power producer (IPP), has achieved financial close on its 45 MW Sonnedix Koriyama solar PV project, from syndication with The Bank of Fukuoka as an arranger, and a further eight regional banks, for a total facility size of over JPY 18.7 billion (~$0.16 billion). Sonnedix Japan acquired the project in early 2017. It is currently under construction, with the plant expecting to achieve commercial operation in early 2024.
Mytilineos, a Greece-based industrial conglomerate, closed non-recourse financing of the Corowa, Junee, and Wagga solar projects in New South Wales in Australia, with lenders ANZ, Societe Generale, and Westpac. The projects have a total capacity of 120 MW (40 MW each project) was acquired in 2019 as part of Mytilineos’ strategic entry to the Australian market. The majority of the power produced and the Large-Scale Generated Certificates (LGCs) from the projects are sold under a ten-year Green Power Purchase Agreement with Coles, an Australian food and grocery retailer.
Ecoenergy, an independent utility-scale renewable energy power producer, has acquired an 87 MW solar power development project in Parau, central Romania. Construction works for the project will start in the first half of 2022. Vlasceanu, Nyerges, and Partners served as the advisors on the transaction.
Israeli renewables developer Nofar Energy has acquired a 185 MW portfolio of solar projects in Poland as part of its plan to grow on the local renewable energy market. The acquisition, the value of which was not disclosed, comes a few days after the Israeli firm agreed to form a joint venture with Polish engineering specialist and power producer Electrum Sp zoo to develop up to 1.25 GW of wind and solar projects in Poland. The 185 MW bundle includes 14 projects with individual capacity ranging between 1 MW and 68 MW, which are at different stages of construction and development. Nofar Energy has purchased the assets through its Nofar Europe subsidiary from Polish firm Paged Real Estate.
OX2, a renewable energy company that develops, finance, and manages large-scale solar and wind projects, acquired the rights to two solar projects totaling 45 MW in Skane, Sweden, from Helios Nordic Energy. The acquisition is part of OX2’s increased focus on solar energy.
Leeward Renewable Energy, a renewable energy company, has closed construction financing and secured tax equity commitments for its Panorama Wind project in Weld County, Colorado. MUFG Bank served as coordinating lead arranger, bookrunner, and administrative agent for the $190 million financing. The financing comprises a construction loan, tax equity bridge loan, and back leverage term loan commitment. National Australia Bank, Silicon Valley Bank, and Helaba Group served as part of the lending group, and Goldman Sachs provided a $135 million tax equity commitment.
CleanCapital, a Clean energy investment platform, has acquired two operating solar projects totaling 11.9 MW from EDF Renewables. The projects were built in 2014 and supply clean energy to the Town of Billerica and the Town of Wareham; both municipalities are in Massachusetts. CleanCapital engaged K&L Gates as Buyer’s counsel on this transaction.
For reports and trackers on funding and M&A transactions in solar, energy storage, smart grid, and efficiency sectors, click here.
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