BlackRock closes 15MW Spanish debt deal

The transaction, which brings the firm’s renewables debt portfolio to more than $600m, marks investors’ latest vote of confidence in the once-beleaguered Southern European market.

BlackRock has closed a debt investment in a portfolio of solar PV assets in the south of Spain alongside power developer Elecnor.

The US firm said the pool of operational assets, which have a combined capacity of 15.3MW, will bring stable, long-term cashflows to its institutional clients. The plants are underpinned by long-term fixed-price operations and maintenance contracts and “commercially-proven” solar PV technology, it added.

BlackRock declined to disclose the exact amount of the investment but told Infrastructure Investor the debt instrument is quoted on the Frankfurt stock exchange, with a 21.5-year term and a 3.948 percent coupon. The deal will add to the firm’s global infrastructure debt portfolio, which stood at $4.6 billion at year end and comprises more than $600 million of renewables investments.

“This financing provides an exciting opportunity to engage in the Spanish solar market, which is backed by a strong regulatory framework and a regulated asset base model,” said Jonathan Stevens, BlackRock’s head of European infrastructure debt.

The news comes as investors return to Spain several years after retroactive subsidy cuts threw a serious chill on the country’s renewables industry.

Last month, Swiss-based buyout house Rive Private Investment teamed up with Spain’s JB Capital Markets to buy two Iberian wind farms with a combined capacity of 28MW.

That came a couple of weeks after JPMorgan-backed Sonnedix agreed to acquire a portfolio of 43 solar plants in Spain with a combined capacity of 136MW.