BBVA closes a landmark energy transaction with CIP for the construction of onshore wind farms in Aragon
BBVA has closed with Copenhagen Infrastructure Partners (CIP), one of the leading global investors in renewable energy, a green loan, long-term project financing credit facility for the investment in the Monegros portfolio of 12 onshore wind farms in Aragon, Spain. BBVA has had all significant roles, including sole bookrunner, structuring bank and green loan coordinator in this transaction amounting to a total of EUR 380m. Apart from BBVA, the final club deal group was composed of five other European banks.
This investment in the Monegros onshore wind farms, part of Copenhagen Infrastructure III K/S, is among the largest renewable energy investments made in Europe and the largest energy deal secured with power purchase agreements in Iberia to date. The project will provide a total installed capacity of 487 MW, and when in full operation, is expected to generate approximately 1.5 TWh of renewable power annually, sufficient to meet the demand of 430.000 Spanish households. The financing has been certified as a green loan by DNV-GL.
The proceeds of the loan will be progressively drawn down coinciding with the construction completion of the different projects. The construction phase is progressing well and the wind farms will gradually reach commercial operations date (COD) over the next 12 months.
Jose Ramón Vizmanos, Head of Global Clients at BBVA, comments: “This is an important transaction for the Spanish renewable energy market and a key mandate for BBVA due to the magnitude and complexity of the project and the "Covid" timing in which it has been developed. We are extremely proud to have led this Monegros green loan, strengthening our relationship with CIP in Iberia and other markets globally. This transaction also contributes to BBVA's leadership as a sustainable finance player and our project finance franchise in renewable energy. We look forward to supporting CIP in their future developments and responsible investment creating a positive impact through sustainable energy.”
BBVA, a leader in sustainable finance
As a sign of its firm commitment to the fight against climate change, BBVA approved its Pledge 2025 in 2018 through which the bank will mobilize €100 billion by 2025 in green financing, sustainable infrastructure, social entrepreneurship and financial inclusion. The bank has the capacity, knowledge and experience to provide its clients superior advisory services for sustainable financial solutions and is playing a key role in developing this market.
BBVA has been a pioneer and a key driving force in the sustainable loan business and is currently one of the most active institutions worldwide and the leader in Spain. In 2019, the bank led a total of 18 deals in Europe and the Americas for clients from many different sectors and was one of the leading banks in the sustainable banking market. By the end of May 2020, BBVA had led five additional transactions.