BlackRock completes solar project financing

The loan is backed by Elecnor’s development of solar photovalic assets in the south of Spain.

The infrastructure debt investment arm of BlackRock has provided a debt facility to a Spanish renewable energy company.

Elecnor is headquartered in Madrid and is the parent company covering 80 subsidiaries employing 13,000 people worldwide. The company manages infrastructure projects, including renewable energy developments and has recently finalised transactions in Bolivia, Chile and Jordan.

Financial details were not disclosed. Representatives from both BlackRock and Elecnor were not available to comment.

The loan is secured against a portfolio of operational solar photovalic (PV) assets in the south of Spain. Elecnor has overseen more than 100 solar PV projects, managing the projects and providing regular maintenance.

Earlier this month, Elecnor sold the Australia-based Barcaldine solar farm for A$33.4 million ($25.6 million; €24.3 million) to Foresight, a UK-headquartered investment firm. Both KDB Investment Management and Hanhwa Energy provided equity for the transaction and a previous $20 million debt financing provided by Clean Energy Finance Corporation will continue to be serviced following the deal.

Towards the end of last year, the company secured a $139 million contract to build a wind farm in Jordan and was also tasked with building two solar PV plants in Bolivia for €65.4 million. In August, Elecnor posted €32.6 million consolidated net profit for the first half of 2016, a 4.3 percent year-on-year increase.

Jonathan Stevens, head of European infrastructure debt at BlackRock, said: “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.”

BlackRock launched its global infrastructure debt platform in 2012 and is led by Erik Savi from the New York office. Last year, the firm appointed Stevens from CIBC, where he headed up the firm’s infrastructure debt investment team. In a recent interview with Bloomberg the firm committed to spending $2.5 billion on infrastructure projects across 2017.

BlackRock’s total assets under management stands at $4.6 billion for its global infrastructure debt platform and last year invested $600 million in renewable energy across the world.