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Kobus Partners and Banca March launch the first Spanishunitranchedebt fund to finance renewable energy projects

24 January 2022 Category: General

  • The Spanish financial institution will be the exclusive distributor of Kobus Asset Finance I SCA, offering a total of €200m to finance the construction of renewable energy projects in the eurozone.
  • The debt fund is backed by the European Investment Fund (EIF).

Kobus Partners and Banca March have launched the first Spanish fund specialising in offeringunitranche debt to finance the construction of renewable energy projects in the eurozone, particularly in the Iberian Peninsula.

With a volume of up to €200 million, Kobus Asset Finance I SCA SICAV-RAIF will be distributed exclusively to Banca March customers and enjoy the financial backing of the European Investment Fund (EIF). The vehicle will initially be provisioned with €57 million, which will subsequently by increased to €200 million, to be channelled into the construction of photovoltaic and wind power projects totalling 300 megawatts (MW), with an individual capacity of under 50 MW.

Unitranche debt is a project debt model which allows up to 90% of construction costs to be funded at a slightly higher cost than traditional bank lending. This financing option does not require the use of Power Purchase Agreements (PPAs) and allows for refinancing as of the third year.

This new fund further underpins Banca March's commitment to sustainability to offering its customers outstanding investment options in partnership with the best specialists in the market. In recent years, this strategy has seen the bank reach agreements for Sustainable and Responsible Investment (SRI) and impact investing strategies managed in partnership with J. Safra Sarasin and Amundi-CPR respectively and the launch of the fixed income fund Robeco Global Climate Bonds, which invests with a view to driving down the carbon footprint of the issuers in its portfolio.

Felipe Mesia, fund manager of Kobus Asset Finance I, said the creation of this vehicle was “the result of a key alliance with Banca March and a milestone in the development of the Spanish alternative funding market for energy and infrastructure projects. Both companies are fully committed to the sustainable energy transition in Europe, and to providing our investors with compelling investment opportunities with very limited risk.”

Ignacio Montero, Head of the Asset Financing Solutions Unit at Banca March, said the agreement with Kobus Partners “responds both to Banca March's commitment to supporting alternative financing and to its unwavering efforts to coinvest with its customers, in the greatest possible alignment of interests, on profitable projects which help drive the transition to a more sustainable economy.”

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