Forestalia signs EIB debt for Spain’s first zero-subsidy wind project
Spanish renewables developer Forestalia has signed the DFI-backed portion of the €170 million ($205 million) of project debt backing the construction of the 300MW Goya wind project in Aragon.
The scheme, which comprises nine wind farms located in the districts of Campo de Belchite, Daroca and Carinena, is sponsored by Mirova (51%) - a subsidiary of Natixis dedicated to responsible investment - General Electric (25%), Engie (15%) and Forestalia (9%). Eponyme Partners advised Forestalia in the equity fundraising
The project benefits from considerable backing from Forestalia's co-sponsors: Engie has signed a 12-year PPA - the first in Spain to be signed during construction - and is also EPC contractor along with Accciona and Copsa. And General Electric is supplying 82 wind turbines for the scheme.
The project is being funded via €170 million of 18-year commercial bank and DFI debt, and €140 million of equity. Lead arrangers BBVA, CaixaBank and Santander are underwriting €120 million of debt, which is expected to close next month, while the EIB has provided €50 million under its Investment Plan for Europe, which signed on 20 April 2018. Forestalia has been advised on the debt side by Agere Energy & Infrastructure Partners, while Allen & Overy provided lender counsel and King & Wood Mallesons acted for the EIB.
