A cross-border and cross-practice team from the Squire Patton Boggs Madrid, Frankfurt and London offices has advised leading German bank NORD/LB on the project financing of three solar PV projects in Spain.
The portfolio consists of two sites in Castilla la Mancha and one in Andalucía. All are under construction, but the first plant is already exporting power and is expected to reach commercial operation this month. NORD/LB, the sole debt provider and hedging counterparty, has provided project debt facilities of around €50 million for a term of 18 years.
Once fully operational, the facilities will have a combined capacity of 115 MWp, producing enough clean energy to power 51,424 homes. Power purchase agreements (PPAs) have been signed with three parties, Nestlé Spain and Nestlé Portugal, Huhtamaki and Holaluz, which will use 70% of the energy generated in the three projects over the next 10 years.
The Squire Patton Boggs team advising NORD/LB comprised Manuel Mingot, José Luis Iriarte, Antonio Bañón, Ana Bohórquez, Manuel Gómez, David Calleja and Romulo de Palou in Madrid, with José Aguilar and Valle de Lara advising on the tax aspects of the project finance transaction. Jens Rinze from the Frankfurt office advised on German law aspects and Leona McManus and Tom Dell’Avvocato from the London office provided advice on English law hedging issues.