BNZ secures Europe’s first multi-country Total IPP Financing (TIPPF) of over €680M, comprised of a €420M green senior warehouse and up to €260M Holdco facility
BNZ, an independent power producer (IPP) that develops, builds and operates solar photovoltaic (PV) projects, has successfully completed its first multi-country Total IPP Financing (TIPPF). The TIPPF includes a senior debt facility and ancillary credit facilities totalling €420 million and a Holdco financing facility of up to €260 million. The raised €420 million green loan financing will allow BNZ to continue developing its strategic growth plan in Southern Europe over the coming years and to execute its ambitious projects deployment plans.
The company, owned by Clean Energy Fund III from Nuveen’s portfolio (one of the largest investment managers with $1.2 Trillion of AUM), secured the senior debt facility from a club of lenders comprising European Investment Bank (EIB), ABN AMRO, Intesa Sanpaolo, NatWest, SMBC, and Bankinter; who have placed their full trust in the robustness of BNZ’s strategic assets and the company’s pipeline, with Palmer acting as agent. The Holdco financing facility will be provided by funds managed by Ares Management’s Infrastructure Debt and US Direct Lending strategies, with Alter Domus acting as agent.
The financing, one of the largest in the European renewable energy market, will enable BNZ to develop its strategic plan as anticipated, allowing the company to complete its solar photovoltaic energy projects in Spain, Italy, and Portugal. It will also initiate the first forays into geographic diversification, hybridisation projects and other technologies that will help enhance efficiency in the creation and distribution of clean energy.
This milestone represents a significant boost to BNZ’s activities, which in recent months has started to ramp up its ambitious construction plans. Examples of this include its first operational plants in Cádiz (Spain) and its first PPA (Power Purchase Agreement) contracts. In total, BNZ plans to deploy a portfolio of more than 1.7 GW of solar PV in Southern Europe by the end of 2026, becoming one of the largest solar IPPs in this region.
One of the points most valued by the financial institutions has been BNZ’s commitment to the environmental and social progress of local communities, going beyond merely meeting the highest environmental standards. As is customary, BNZ collaborates with local authorities on environmental projects for each of its initiatives to ensure maximum compatibility between clean energy generation and the promotion of wildlife and biodiversity at the solar plants.
BNZ Managing Director, Luis Selva, expressed his gratitude for the team’s effort that made this operation possible and said: “The new phase marked by the closing of our financing, reaching €680 million, demonstrates the solidity of our business and the ambitious nature of our plans and opens up new opportunities for us to explore technological and geographical diversity, and to expand both our operations and our team, with the aim of becoming one of the largest IPPs in the market. We want to continue building a cleaner and more sustainable future, and the support from such significant financial institutions shows a shared long-term vision to achieve a better world”.
BNZ Finance Director, María Puente, said: “It is an honour to have been able to contribute to this major milestone for BNZ, which will undoubtedly mark a significant turning point in our journey. I want to thank everyone who made this operation possible, allowing us to continue growing in the coming years”.
Jordi Francesch, Managing Director of Asset Management of Nuveen Infrastructure, said: “This significant step taken by BNZ is the culmination of a tremendous effort by the entire team behind BNZ and Nuveen Infrastructure over the past six years since the project began. This is proof that the experience of our teams in operations and asset management has ensured the long-term value of our investments”.
Isabel Rodriguez de Rivera, Managing Director of Renewable Energy Investments of Nuveen Infrastructure, added: “This groundbreaking transaction represents a major milestone for BNZs growth in Southern Europe strengthening its capabilities for future growth; its successful completion has been possible thanks to a cross-border team effort across Nuveen and BNZ and the invaluable support of our trusted advisors; and will set the framework for future cross border activities across Nuveen”.
BNZ wants to thank its partners who helped bring the financing to a successful conclusion. Akereos Capital acted as exclusive debt advisor to BNZ on the TIPPF with Linklaters acting as legal advisor to BNZ. Clifford Chance acted as legal advisor to the club of senior debt lenders while Ashurst represented Ares as Holdco lender.
It is also important to highlight the role of Garrigues, Gianni & Origoni, EY and Mazars in the legal and tax fields; as well as major technical consulting firms like Enertis, EOS Consulting, and Everoze; AON on the insurance side, in addition to DNV and TAUW in the ESG spectrum, along with other reputable advisers that helped grow the day to day of BNZ’s business in the past three years.
