26 May 2021
Cubico Sustainable Investments (Cubico), a leader and global investor in renewable energy, has achieved financial close on the refinancing of the Moron and Olivenza concentrated solar power (CSP) projects in Sevilla and Badajoz, Spain.
The refinancing of the projects, which were acquired in March this year as part of the Grupo T-Solar portfolio and have a capacity of 50 MW each, was completed with a green loan.
The green loan complies with the Green Loan Principles and is the fourth of this type in Cubico’s Spanish portfolio, following the refinancing of the 50 MW Arenales, Andasol I and Andasol II CSP plants last year.
Additionally, a hedge derivative has been put in place to cover interest rate risks. The instrument incorporates a pricing mechanism that incentivises the improvement of the water footprint of the CSP plants. It is the first of its kind in Cubico’s portfolio and one of the first in Spain.
The lenders club is comprised of the following Mandated Lead Arrangers (MLAs): Aviva Investors, CaixaBank, Export Development Canada, ING, Rivage Investment, Santander Corporate & Investment Banking and Societe Generale.
Cubico was advised by Watson Farley & Williams (legal) and Chatham Financial (hedging).
The MLAs were advised by Clifford Chance (legal), Altran (technical), Eisenar (insurance) and EY (tax and model audit).
Santander Corporate & Investment Banking acted as bookrunner for the institutional investors and as hedge coordinator.
David Swindin, Head of EMEA at Cubico, said: “We are delighted, once again, to have seen the strong appetite from banks and institutional lenders for financings linked to projects sponsored by Cubico.
“I think our long-term approach to ownership is welcomed by lenders and we look forward to further opportunities in the Spanish market.”
José Canales, Head of Iberia at Cubico, added: “Cubico’s commitment to sustainability makes a strong ESG agenda a key pillar of our strategy. We are therefore very pleased to reinforce this commitment through this green loan, made even more significant by our first ESG-linked hedge.
“The ESG project, which will help us to sustainably manage the lifetime water footprints of the Moron and Olivenza assets, aligns our economic incentives with responsible operations.”
Carlos Ciervide, Head of Santander CIB Markets Iberia, said: “We are delighted to support Cubico on a transaction that incentivises the improvement of water management at its Moron and Olivenza solar projects and more broadly aligns our institutions’ sustainability priorities.
“We are strongly committed to further developing our advisory and risk management products that promote sustainability and sustainable resource management.”