Thursday, September 21, 2023

Montero Aramburu advises EVLI Fund and RECAP Energy on €25m project finance with Triodos Bank

Montero Aramburu Abogados has been the legal advisor of the joint venture formed by EVLI Fund Management Company Ltd. and RECAP Energy in the negotiation and closing with Triodos Bank of a 25 million project finance agreement


The facility will finance a transaction of 40-50 MW of self-consumption photovoltaic facilities in Spain and Portugal.

Triodos Bank, a European leader in ethical and sustainable banking, has closed a new transaction project financing arrangement worth €25 million, with which it will finance the second non-recourse project finance for rooftop solar for Recap and Evli, a Swedish and Finnish company, respectively, which provide, among other services, clean, flexible, customized, and fully financed energy solutions for commercial and industrial companies in Spain and Portugal.

The produced electricity is sold through long-term power purchase agreements (PPAs) with energy consumer companies (off-takers). In the business model, the contracts will be standardized for all facilities, and mechanisms have been designed so that they provide flexibility for the modification of the portfolio of facilities and off-takers. Once the power purchase agreement has ended, typically after 15 years, the installation will become the property of the consumer company with which the PPA contract was signed.

The portfolio will consist of more than 40 photovoltaic plant installations that will be built between 2023 and 2024 in sectors including food, construction, recycling, or the pharmaceutical industry, among others. The facilities will have a total capacity of 40-50 MW and an expected production of 60 GWh per year.

Miguel Angel Amores, Renewable Energy and Environmental Technologies Manager at Triodos Bank Spain, has highlighted the innovative financing as, “thanks to the size and diversification of the portfolio, we can make a project financing without recourse to the partner and without the need for energy consumer companies to have great financial solvency. Likewise, long-term energy sales contracts allow companies to immediately reduce their energy costs without making investments or taking on debt. In

this way, we facilitate decarbonization for all types of companies, which is key to accelerating the energy transition.”

Marco Berggren, Founder and CEO of Recap Energy continues, “Recap has since 2017 been providing flexible financial solutions for commercial and industrials to reduce their energy costs through the rooftop solar PPA solution. By offering off-balance financing to the commercial and industrial, they can enjoy the savings of a solar plant without affecting the investment budgets in their own business. We are very happy to have Triodos Bank and Evli by our side in this business to support the energy transition of the industry in Spain and Portugal”.

According to Daniel Pasternack, portfolio manager at Evli, Finland: “This collaboration is a great opportunity for us to continue working together with Recap and expand the previously proved business model to the next level. Providing self-consumption solar PV plants to clients in different industries, without the need for an initial investment from the consumer, is one important way to make the whole energy system sustainable. We are very happy that Triodos is enabling this expansion”.

IDCM has acted as financial advisor on the transaction, the law firms Gómez-Acebo & Pombo and Montero Aramburu have acted as legal advisors for the transaction, and Enertis Applus+ has acted as the technical advisor for the transaction.

Montero Aramburu team was led by partner Miguel Cuesta Boothman, in close collaboration with the senior associates Rebeca Cuesta Boothman and Víctor Moya Ximénez and lawyer Luis Villafranca López.

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