Through INFRAGREEN IV, RGREEN INVEST has agreed to commit to invest up to €42M in the construction of the projects under a preferred equity scheme.
UMBRELLA SOLAR INVESTMENT (the “Company”) has joined forces with INCUS CAPITAL as debt provider and with RGREEN INVEST (via its INFRAGREEN IV vehicle) as equity co-investor (Project Infinity) in the financing of its Spanish solar PV 212 MWp portfolio.
UMBRELLA SOLAR INVESTMENT, headquartered in Valencia, is a global vertically integrated company with a focus on photovoltaic energy. The group is composed by different companies, such as IM2 Energía Solar and Turbo Energy Solar Innovation, all pioneers in their respective segments within the photovoltaic sector and in the geographic areas where they operate.
UMBRELLA SOLAR INVESTMENT historically owned and had developed a portfolio of 14 solar PV projects located in the Extremadura, Andalucía and Comunidad Valenciana regions in Spain, adding up to a total capacity of 212 MWp. The Company, which has historically pursued a development strategy in the highest irradiation regions from Iberia, successfully managed to take the projects to a very advanced development status, with several projects already construction-ready. The portfolio will be selling energy under a fully merchant scheme and when fully operational could supply energy to over 115,000 households.
Construction activities will be entrusted to IM2 Energía Solar, the Company’s EPC subsidiary, and will start in 2022 for the most advanced projects. IM2 counts with a solid experience in engineering, procurement, and construction of solar PV projects having brought to operations more than 150 projects in Spain and Chile.
In April 2022, UMBRELLA SOLAR INVESTMENT signed a portfolio-wide merchant term loan construction financing agreement with INCUS CAPITAL for a total amount of 106.5 €m to fund the construction of the portfolio. Financial close for the first 27 MWp project is expected to be achieved in the next days.
Subsequently, in June 2022, UMBRELLA SOLAR INVESTMENT closed an investment agreement with RGREEN INVEST to acquire a minority stake in the Joint Venture vehicle which will own and operate 14 SPVs. Through INFRAGREEN IV, RGREEN INVEST has agreed to commit to invest up to 42 €m in the construction of the projects under a preferred equity scheme.
Project Infinity represents a key milestone in UMBRELLA SOLAR INVESTMENT’s strategy to further integrate across the energy value chain and consolidate as an IPP with proprietary operating assets. Equally so, this transaction confirms INCUS CAPITAL’s capabilities in providing flexible capital solutions for real assets in Europe and RGREEN INVEST’s continued support of the growth of European developers and operators by offering tailor-made financing solutions.
On Project Infinity’s debt agreement, UMBRELLA SOLAR INVESTMENT has been advised by Finergreen (Financial), Pérez-Llorca (Legal), EY (Administrative and tax), ATA (Technical), Marsh (Insurance) and PwC (Model Audit). On its side, INCUS CAPITAL has been advised by Linklaters (Legal) and Taiga Mistral (Technical).
On the equity agreement, UMBRELLA SOLAR INVESTMENT has been advised by Finergreen (Financial) and EY legal (Legal and tax) and RGREEN INVEST has been advised by Watson Farley & Williams (Legal and tax).