Triodos Bank has provided £17.9 million of loans to two UK solar projects for Gamma Solutions SL
Triodos Bank, Europe's leading sustainable bank, has provided £17.9 million of loans to two UK solar projects for Spanish developer Gamma Solutions SL. The transaction combines two types of loans in one finance package, namely £15.1 million of project finance loans from Triodos Bank with £2.8 million of mezzanine loans from the Triodos Renewable Europe Fund (TREF), a dedicated renewable energy fund managed by Triodos Investment Management in the Netherlands.
Stokes Marsh and Stoneshill solar farms are located near Coulston in Wiltshire and Exeter in Devon. The ground-mounted solar projects have capacities of 15.1MWp and 5.0MWp, and were commissioned in March 2015 and March 2017. With over 62,000 solar panels installed over 41.5 ha, their expected annual production of 19,973 MWh year is sufficient to power 5,068 homes and reduce 7,716 tonnes of CO2 emissions.
Stirling Habbitts, who led the UK transaction within the Project Finance team at Triodos Bank UK said: "At Triodos Bank we can provide a variety of types of finance for renewable energy projects including project finance loans, mezzanine loans and equity. In this case we were able to increase our finance offer by combining project finance with a mezzanine loan, creating a bespoke finance solution to meet our customer's needs. We are pleased to assist international organisations such as Gamma Solutions to grow their investments in UK renewables."
The projects receive revenues under the UK Renewable Obligations Certificates (ROC) scheme and under power sold via Power Purchase Agreements (PPAs). The finance package will assist Gamma Solutions to consolidate its UK solar portfolio and release funds for new projects. Triodos Bank are collaborating with Gamma Solutions on the finance of further projects including a portfolio of rooftop solar projects in Spain.
Legal advisors for the transaction were TLT for Triodos Bank, Norton Rose Fulbright for Triodos Renewable Europe Fund and Michel Mores for Gamma Solutions. Technical Advisors were Green Cat Renewables and RINA Consulting.
Cesar Gonzalez, CEO of Gamma: "Triodos was instrumental in providing Gamma with a financial package that could address the complexities of these two ground-mounted solar energy projects. Triodos had the flexibility and adaptability to propose a solution that maximised leverage at a reasonable cost. Triodos was also very responsive to Gamma's time constraints and was able to take the financial solution from inception to execution and completion in a record time. We are extremely satisfied with Triodos team's approachability and pragmatism and we hope this is the first of many transactions with Triodos."
Vincent van Haarlem, Fund Manager of the Triodos Renewables Europe Fund: "We are very pleased to add this sizeable PV asset to our investment portfolio. The investment fits with our strategy to cooperate closely with partners like Triodos Bank and Gamma, and it creates a solid platform for further cooperation. This project significantly contributes to the Fund's aim to reduce CO2 emissions in Europe and as such to a much needed transition to a more sustainable society."
Ed Grattan, PR and Comms Manager
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Notes to editors
About Gamma Solutions
Gamma Solutions is an international engineering and technology group focused on telecommunications, energy efficiency and renewable energy. Gamma provides turnkey solutions for implementing renewable energy and energy efficiency projects, including engineering, project management, installation and commissioning. Gamma has worked on 10 ground mounted solar projects across the UK and Spain, and 72 rooftop solar projects in Spain. Gamma is headquartered in Madrid and has UK offices in London and Exeter, and also operates in Argentina, Chile, Colombia, Ecuador, Mexico and Peru.
About Triodos Renewables Europe Fund
Triodos SICAV II - Triodos Renewables Europe Fund (Triodos Renewables Europe Fund) offers investors the opportunity to actively contribute to the growth of renewable energy production in Europe. The fund, which was launched in 2006, invests in equity and subordinated debt of small to medium-sized European producers of green power, primarily wind and solar energy power plants. Triodos Renewables Europe Fund is an initiative of Triodos Bank. Triodos Bank has over 25 years' experience of investing in renewable energy. The fund is established in Luxembourg. Triodos Investment Management acts as management company of the fund.
About Triodos Bank
Triodos Bank is a global pioneer in sustainable banking using the power of finance to invest in projects that are good for people and the planet. Triodos uses its €13.5 billion (2016) in assets to create social, environmental and cultural value in a transparent and sustainable way. With UK operations based in Bristol, Triodos Bank has branches in the Netherlands, Belgium, Spain, Germany and an agency in France. Globally, Triodos Bank has microfinance projects in Central Asia and Eastern Europe, and is a founding member of the Global Alliance for Banking on Values (GABV), a worldwide network of 43 banks seeking to transform finance into a vehicle of positive influence.
Triodos Bank NV (incorporated under the laws of the Netherlands with limited liability, registered in England and Wales BR3012). Authorised by the Dutch Central Bank and subject to limited regulation by the Financial Conduct Authority and Prudential Regulation Authority. Details about the extent of our regulation by the Financial Conduct Authority and Prudential Regulation Authority are available from us on request.