Israeli company Enlight Renewable Energy has secured project financing for the 312-megawatt Gecama wind farm in Spain.
The project was financed by Banco Sabadell and Bankia - the loan will cover 50 per cent of the total project cost, which is estimated to be €320 million.
The senior debt – provided as a non-recourse loan – will be repaid over the first 14 years of operation.
The project – which is located in the Spanish province of Cuenca – is expected to generate average annual revenues of €60 million.
It will provide clean energy to approximately 260,000 Spanish households and prevent emissions of approximately 150,000 tons of CO2 annually.
Enlight will hold a 72 per cent stake in the project company and will provide €115 million in financing, with the rest of the capital being provided by the remaining project partners, Phoenix and Menora Mivtachim.
Banco Sabadell and Bankia were advised by a Madrid-based Watson Farley & Williams (WFW) team on the deal. The WFW team included partner Rodrigo Berasategui and senior associate Jacobo Hermidas. Clifford Chance advised Enlight.
Gilad Yaavetz, Enlight CEO, said: " We are proud that Gecama project will provide many jobs in the district and will help boost the Spanish economy in such important times."
Roger Font, head of project finance at Banco Sabadell, said: "It has been an honour and a great opportunity to work with Enlight and the other parties involved in the financing of one of the largest merchant projects in Europe. The experience and track record of Enlight has been one of the key success factors in this project as well as the characteristics of the plants which demonstrates that the wind sector is capable of competing with other technologies without any governmental subsidies."
Jörg Hahn, head of structured finance at Bankia, said: “It is a great satisfaction for Bankia having reached an agreement with Enlight to finance the construction, commissioning and operation of one of the largest wind farms in Spain owned by its subsidiary Gecama, which will contribute to improving the energy mix of the country."