Solek, a solar energy group, has successfully secured $379m in financing for its Chilean portfolio. The portfolio includes utility-scale solar photovoltaic plants and PMGD (Small Distributed Generation) plants situated in the Central Region of Chile. Solek, a rapidly expanding company in the renewable and solar energy industry, currently possesses a portfolio of around 284MWdc in Chile. Additionally, they have over 400MW of projects in the development stage across Latin America.
The extensive financing package includes various components as follows: a senior private placement of $178m, a mezzanine loan of $75m, a PMGD bridge-loan facility of $55m, a utility-scale bridge loan of $37m, an LC Facility of $19m, and a VAT line of $15m. BNP Paribas and Natixis, New York Branch served as placement agents, arrangers, and lenders. BCI and Scotiabank Chile acted as agents and lenders for the local facilities. White & Case provided international legal counsel, while Guerrero Olivos provided local legal counsel to the company.
Solek has recently ventured into the prominent United States Private Placement market (USPP), demonstrating its appeal to investors and securing flexible avenues for further financing. The company has made its entry into this new market through a 20-year bond issuance valued at approximately $178m. The transaction garnered significant interest from investors, underscoring the attractiveness of Solek’s assets and instilling confidence in its long-term strategies.
The USPP market stands as one of the world’s largest and most sophisticated bond markets, welcoming participation from both US-based and international companies. It attracts active investors comprising major international investment funds and insurance companies globally.
Solek Group founder and CEO Zdeněk Sobotka said: “Thanks to the big opportunities that the renewable energy sector offers today, Solek has been experiencing a period of dynamic growth that implicates financing requirements. We had to meet stringent accreditation criteria to access financing on the USPP market. This flexible financing will allow us to focus on our PV projects and further development.”
In accordance with the customary practice in the USPP market, Solek has issued long-term bonds. Consistent with this market convention, Solek’s USPP bonds feature an amortising repayment structure and have a maturity period of 20 years. This approach ensures that the debt profile aligns with the lifespan of the underlying investments made by the company.
The funds raised through the issuance of USPP bonds will primarily be utilized to support SOLEK’s expansion initiatives and to refinance existing debt. This significant milestone marks a crucial step in the company’s ongoing growth trajectory, enabling it to pursue its strategic objectives effectively.
Since 2010, Solek has successfully connected a total of 53 PV solar projects, comprising 18 projects in Europe and 35 projects in Chile. At present, the group has an extensive pipeline of over 38 projects scheduled for construction in Chile between 2023 and 2024.
The company has set an ambitious target of achieving a total installed capacity of 400 MW worldwide by the end of 2023, with a significant portion allocated to Latin America. Within Europe, there are PV solar projects in progress, amounting to a combined capacity of 1.4 GW. Notably, the projects in Romania and Greece are in the most advanced stage of development, with plans for the first plants to be connected in 2024.
