Acciona seeking €600 million loan: report
Acciona is reportedly on look-out for a project finance loan of more than €600 million ($766.6 million) for a solar thermal project in southern Spain.
According to Reuters, the financial proposals were due recently. But considering that banks have become increasingly cautious about committing capital over year-end balance sheet constraints, many proposals are expected to be delayed, with such development being attributed to a banker.
Bankers reportedly said the loan is likely to club, with around 12 banks expected to commit 50 million euros each.
The same report pointed out that maturities in the solar renewable energy market are in the 20-year range, which many banks will find difficult to commit to amid high funding costs. Plus, bankers "estimate margins on a facility with that maturity profile will range from 190 to 210 basis points and more, and almost double the typical average margins for the sector last year", added the report. The average margin in 2007 for Spanish renewable solar energy loans with long term maturity profiles of around 20 years was of 109.29 basis points, according to data from Reuters Loan Pricing Corp.
In May this year, Acciona Energy shared that it will build two thermal solar power plants (50 MW capacity each) in Palma del Río (Córdoba, southern Spain). It was shared that the facilities represent an investment close to 500 million euros and their entry into service is planned for 2010. The plants are to produce 244 million kilowatt-hours per annum, equivalent to the electricity consumption of 75,000 homes.