Capcora accompanies developer on securing junior debt for 80 MWp solar PV project in Germany from Prime Capital

Capcora organises mezzanine financing for 80 MW solar project in Germany
© CapcoraFrankfurt am Main (renewablepress) - Capcora successfully secured mezzanine financing of approximately EUR 11 million for one of its German clients. The financing is provided by the Prime Sustainable Infrastructure Debt Fund (“PSIDEF”), a multi-investor debt fund managed by Prime Capital AG, currently at fund raising stage for second close investors. The financing will primarily support the late-stage development and construction costs of an 80 MWp solar PV project in Germany. Capcora acted as the exclusive financial advisor for this transaction.

The project is located in Brandenburg and is scheduled to commence construction in Q2 2024, with a targeted commercial operation date in April 2025.

This mezzanine funding solution significantly optimizes the project's procurement process, especially in terms of acquiring long-lead items. Subsequent arrangements for senior financing will be made as construction progresses.

Raising financing for projects without long-term EEG tariff in Germany remains a substantial challenge in the market. Various financial institutions often require Investment Grade (IG) rated long-term PPAs to secure financing, and the process of sourcing such agreements can be time intensive. Typically, financing is disbursed late in the construction phase, while the project's procurement, including critical components like transformers, is frontloaded and relies on equity. Mezzanine financing plays a vital role in bridging this gap.

"This junior financing is among the pioneering instances of its type in the German solar market. Frontloaded financing addresses crucial liquidity challenges in the industry, and we're pleased to demonstrate our commitment to addressing this issue within our domestic market," explained Bernhard Hofmann, Director at Capcora.

“We are delighted to support ambitious plans for this project through this bespoke junior financing, which provides our investors with access to immediate and attractive returns while contributing to the energy transition. This transaction marks another important step for the recently launched PSIDEF fund and we are very much looking forward to continuing to build a sustainable and diversified portfolio for our investors.” adds Stefan Futschik, Head of Private Debt at Prime Capital.”

Simmons&Simmons acted as the lender’s legal advisor while the borrower was supported by Graf von Westphalen as legal advisor and Capcora as exclusively mandated financial advisor.


About Capcora

Capcora is an independent financial advisory boutique specializing in M&A and project finance services to accelerate the energy transition in Europe. Founded in 2015, the Frankfurt-based company helps its clients succeed in the renewable energy and infrastructure sectors by advising them on sell-side and buy-side transactions, and by raising mezzanine, unitranche or senior debt.

www.capcora.com


About Prime Capital

Prime Capital AG is an independent asset management firm and financial services provider, owned by management and employees. The company takes a holistic, cross-divisional approach and specializes in Alternative Investments, in particular in Absolute Return, Infrastructure, including Renewable Energies and Private Debt. Furthermore, the company offers Access Solutions. Prime Capital was founded in 2006, currently employs around 140 people in Frankfurt and Luxembourg and is regulated by BaFin and CSSF. As of September 2023, Prime Capital has approximately EUR 4.3 bn Assets under Management as well as EUR 8.5 bn Assets under Administration.

www.primecapital-ag.com


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Caption: Capcora organises mezzanine financing for 80 MW solar project in Germany
© Capcora


Frankfurt am Main, 19 February 2024


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