Latest news with #MEAG
Yahoo
6 days ago
- Business
- Yahoo
Enlight secures $310m for Spanish hybrid renewable energy facility
Enlight Renewable Energy has signed financing agreements totalling $310m for the hybridisation of the Gecama project in Spain. The project will integrate a solar array and utility-scale energy storage system with the existing Gecama facility, Spain's largest wind farm, which has a capacity of 329MW. The integrated facility, with a total capacity of 554MW and 220 megawatt hours, aims to deliver clean electricity around the clock at a competitive cost of generation, yielding high returns. The Gecama hybrid project will be Spain's largest renewable energy complex of its kind and contribute significantly to the country's storage infrastructure, aligning with the national plan to combat climate change and enhance energy supply stability. The development is timely, considering the widespread power blackouts Spain experienced in April 2025. The battery system will support peak shifting and provide essential grid services, such as frequency response, to help stabilise the power system. Enlight CEO Gilad Yavetz stated: 'With the financial close at Gecama, Enlight marks another significant milestone in its European activity, by expanding one of its core assets into Spain's first hybrid complex of its kind. This move is groundbreaking on two levels – establishing the country's largest renewable energy complex and demonstrating technological leadership through the integration of utility-scale battery storage. 'The project reflects our 'Connect & Expand' strategy – maximising the potential of existing interconnection infrastructure to scale projects – reducing investment costs, minimising risk, lowering the levelised cost of electricity and optimising financial returns.' The solar and storage components are expected to reach commercial operation in the second half of 2026. Their addition could increase the Gecama project's annual revenues by between $38 and $40m and earnings before interest, taxation, depreciation and amortisation (EBITDA) by $31 to $33m in the first full year of operation. With all three components, the integrated project could generate annual revenues of $95 to $105m and EBITDA of $75 to $80m. The financing comes in two tranches: the first for refinancing the Gecama wind project and the second for constructing the hybrid project, both bearing a fixed interest rate of 5.1% and fully amortising by 2045 and 2046 respectively. After repaying existing debt, funding reserves and transaction costs, more than $150m will be allocated to the hybrid project's construction, with total estimated costs of between $195 and $205m, while the balance will be funded through equity. MEAG's infrastructure debt transactions team, acting as sole arranger and portfolio manager of certain funds and accounts, led the financing, with additional institutional co-investors. MEAG is the asset management arm of Munich Re. BNP Paribas served as the sole financial advisor and DLA Piper as the legal advisor for Enlight. MEAG received advisory support from Linklaters as the lenders' legal advisor and from G-Advisory and Hartford Steam Boiler as technical advisors. Enlight indirectly holds 72% of the Gecama project through its subsidiary, with the remaining interest held by Israeli institutional investors. Enlight recently announced financial close for the Quail Ranch project in the US state of New Mexico, with $243m in construction loans secured through Clenera Holdings, its US subsidiary. "Enlight secures $310m for Spanish hybrid renewable energy facility" was originally created and published by Power Technology, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
Reuters
21-05-2025
- Business
- Reuters
Finland's Stora Enso to sell 12.4% of Swedish forests for about $1 billion
May 21 (Reuters) - Finnish forestry group Stora Enso ( opens new tab said on Wednesday it is divesting 12.4% of its Swedish forest holdings for an enterprise value of 900 million euros ($1.02 billion). The divestiture is anticipated to reduce the group's adjusted EBITDA by about 25 million euros per year and is expected to reduce net debt by 790 million euros, the company said. Stora Enso will retain a 15% ownership interest in the new entity, while Soya Group will own 40.6% and a consortium led by MEAG, the asset manager for Munich Re of Germany, will hold a 44.4% stake. The company and the divested entity will also enter into a 15-year wood supply agreement with a possible additional 15-year extension to secure wood availability for Stora Enso's Swedish business units. Stora Enso reported its divestment plans in October last year in a move to reduce debt and strengthen its balance sheet. The company in April reported that its adjusted earnings before interest and taxes rose to 175 million euros in the first quarter, surpassing analysts' 124.9 million euro forecast in a poll by Vara Research. ($1 = 0.8832 euros)
