UNITRANCHE BRIDGE FINANCING

The proposed EIB operation will finance a lending vehicle that will provide unitranche loans to solar photovoltaic (PV) and wind on-shore projects in Iberia.

The proposed EIB operation will finance a Vehicle that will provide unitranche loans to solar PV and wind on-shore projects (SPVs) in Iberia (Spain and Portugal). The vehicle is promoted and managed by Ben Oldman (the Promoter) and expects to invest EUR 200 million through unitranche loans in 2-3 years. The vehicle will be funded by a junior bond subscribed by investors and by a senior facility provided by EIB.

The proposed EIB operation is a senior Framework Loan to a lending vehicle (the "Vehicle") created to provide tailor-made senior loans to merchant solar PV and wind on-shore projects in Iberia (Spain and Portugal) developed by small and medium size developers. 

The projects financed by this operation will increase the renewable energy generation capacity in Spain and Portugal and will contribute to national and EU 2030 climate objectives.The financing of this project also contributes to the Bank's lending priority objectives in renewable energy, climate action, and economic and social cohesion. Electricity will be produced from low carbon sources (solar PV and on-shore wind),addressing the market failure of negative climate and environmental externalities, through the reduction of carbon emissions and air pollution (compared to fossil-fuel generation).The projects will rely on revenues from the market (the wholesale market and unsubsidized commercial PPAs), in a sector characterised by incomplete markets and thereby, the projects will improve market efficiency and competition.It is expected to yield very good quality and results due to excellent social benefits and fair employment creation.With the appropriate conditions in place, the project is acceptable for financing in environmental and social terms.

Details of the Promoter's environmental and social due diligence procedures for ensuring compliance with relevant EU and national legislation and EIB's Environmental and Social Standards as well as the capacity of the Promoter to assess and monitor environmental and social risks and impacts, will be reviewed during appraisal. The assessment of the environmental and social impacts and risks will be part of the standard due diligence process that the Fund will have to carry out for each underlying investment, thereby ensuring that the portfolio and these investments are in compliance with national law, EU environmental legislation as well as the EIB Environmental and Social Standards.

The Promoter has been assessed by the EIB as being a private company not subject to EU rules on public procurement or concessions. However, if after the project appraisal, the EIB were to conclude that the Promoter is after all subject to EU public procurement legislation (Directive 2014/23/EU / 2014/24/EU 2014/25/E), where applicable, then the Bank would require the Promoter to ensure that contracts for the implementation of the project will be tendered in accordance with the relevant applicable EU procurement legislation (Directive 2014/23/EU /2014/24/EU / 2014/25/EU) where applicable, as well as Directive 92/13/EEC or Directive 89/665/EEC as interpreted by the Court of Justice of the EU, with the publication of tender notices in the Official Journal of the EU, as and where required.