BlackRock backs €62m Spanish solar buy

The debt of the 10.9MW project has been bought following a bond issue by Solaria and is the firm’s second debt deal in the sector this year.

BlackRock has bought the project bond of a 10.9MW solar plant in Spain, backing the site to the tune of €47.1 million.

The US firm subscribed to the bond issued by Solaria Energia when the Madrid-listed renewables investor bought the Magacela Solar 1 project from DTL Corporación late last month. Solaria Energia paid a total €61.6 million for the plant based in Extremadura.

The bond was listed on the Frankfurt Stock Exchange, with a coupon of 3.769 percent and a maturity date of 30 June 2037.

BlackRock said the bond subscription for the operational solar project will provide stable and long-term cashflows with attractive returns. The deal is BlackRock’s second debt transaction in the Spanish solar sector this year, following its backing of a portfolio of assets with a combined capacity of 15.3MW in February. Its infrastructure debt platform totals about $6.4 billion and includes more than $600 million of renewables.

“This financing provided an opportunity to extend our investment in the Spanish solar sector with an experienced partner and at an attractive price,” said Jonathan Stevens, head of European infrastructure debt at BlackRock.

Solaria was formed in 2002 and began listing in Spain in 2007. It owns more than 70MW of solar assets spread across Spain, Italy, Greece, Brazil and Uruguay. The portfolio is set to increase considerably after it was awarded 250MW of new capacity following Spain’s recent 5GW renewable auction, notable for the return of solar to the previously downtrodden market.