Banca March reinforces its co-investment strategy in sustainability and commits EUR 50 million to Alantra Solar's 1.8 GW photovoltaic vehicle through March SolEnergy
29 February 2024 Category: Sustainability
- The commitment of Banca March and its customers in March SolEnergy, FCRE, S.A. amounts to EUR 50 million. The launch of this new co-investment product highlights Banca March's commitment to alignment with the sustainability and carbon neutrality goals set by the European Union's Green Deal.
- The backing from Banca March represents another important milestone for Alantra Solar (a partnership between Alantra and Solarig) after securing EUR 213 million of debt financing from a banking syndicate for the development of the first batch of seven photovoltaic plants.
- As one of Europe's largest solar development platforms, the investment vehicle N-Sun Energy will progressively acquire a portfolio of more than 40 PV plants in Italy and Spain, and has so far raised EUR 315 million in capital commitments. Solarig is currently developing the entire portfolio of facilities and the latest projects are expected to reach "RTB" (Ready To Build) status by the end of 2025.
Banca March launches March SolEnergy FCRE S.A., a new co-investment product in collaboration with Alantra Solar, to create a diversified platform of more than 40 PV plants in Spain and Italy, of which a significant percentage will have battery hybridisation, with a capacity of 1.8 GW. The bank, which together with its customers will contribute EUR 50 million, thus reinforcing its strategy of supporting the growth of companies that develop sustainable solutions for the energy transition.
Banca March and the co-investor customers will participate in the structure through a European Venture Capital Fund (VCF) in the form of a public limited company, in parallel to the vehicle structured by Alantra, which is joined by strategic investors Reichmuth Infrastructure and Amundi Energy Transition.
These vehicles will participate in the capital of N-Sun Energy S.L., a company that will progressively acquire the more than 40 photovoltaic plants located in Italy (around 70%) and Spain (around 30%), these being the leading markets in solar energy. Plants already identified and under exclusivity will be incorporated into the Ready to Build (RTB) portfolio.
Strategic Alliance of Banca March and Alantra Solar in a Co-investment Project
Banca March has chosen Alantra Solar as a reference partner for this project due to its combination of financial and industrial know-how. Alantra Solar is the asset manager of the Alantra Group, the independent global mid-market financial services firm specialising in renewable energy and infrastructure investment, with Solarig as a partner. Alantra will lead the entire equity and debt financing process for the project, whereas Solarig, a company specialising in the development of infrastructure for the energy transition with more than 19 years of experience and operations in 12 countries, is currently developing all the facilities and the last projects are expected to reach RTB (Ready To Build) status before the end of 2025.
The investment platform is expected to invest a total of EUR 1.7 billion, of which EUR 700 million will be in capital instruments and the remaining EUR 1 billion in debt.
The launch of this new co-investment product highlights Banca March's commitment to alignment with the sustainability and carbon neutrality goals set by the European Union's Green Deal. Over recent years, Banca March has rolled out several innovative, alternative investment and financing solutions that combine sustainability and performance.
Ignacio Montero, Director of the Co-Investment Unit at Banca March: "The energy sector is undergoing a profound transformation in search of a more affordable, efficient and sustainable energy supply, meeting a changing and multi-faceted demand. At Banca March, we want to support the growth of renewable energies, especially solar, to meet our customers' growing demand for products and services that prioritise sustainability and decarbonisation."
Javier Mellado, Managing Partner of Alantra Solar: "Having secured debt financing of EUR 213 million from a banking syndicate for the development of the first batch of seven photovoltaic plants, the progress of our fundraising efforts represents another outstanding achievement. We are very proud of the support we have received from such prestigious institutions as Amundi Energy Transition, Reichmuth Infrastructure and now Banca March. Their confidence is a clear testament to the soundness of our investment strategy."
Co-Investment, a hallmark of Banca March
Co-investment is a hallmark of the Banca March Group's commitment to its customers, inviting them to participate as partners in the same investment vehicles or projects the bank invests in. Following this philosophy of aligning interests, over the years, the family bank has co-invested with more than 9,000 customers through its institutional SICAVs (Torrenova, Lluc and Bellver) liquid co-investment vehicles that at the end of 2023 had assets totalling EUR 1,900 million. In the unlisted co-investment category, since 2008 the Banca March Group has invested more than EUR 2.65 billion in illiquid assets with its more than 2,100 co-investors.
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