Spanish renewables developer-operator Grenergy Renovables SA has borrowed a USD-157-million (EUR 146.9m) green loan from Banco Santander SA to finance renewable energy projects, including battery storage, in Latin America and achieve its growth plans.
CESCE, the Spanish export credit insurance agency, has guaranteed the loan. The interest rate on the loan is Secured Overnight Financing Rate (SOFR) plus 1.8%, Grenergy said on Monday.
The loan, with a grace period of two years, will mature in eight years.
Grenergy also entered into an interest rate swap, which will cover 100% of the principal amount of the loan. The cost of the interest rate swap is below 3.0%. However, this cost could be reduced if Grenergy meets certain environmental, social, and governance (ESG) requirements.
Grenergy said that it plans to allocate resources to continue driving its growth, “closely linked to energy storage”. More details will be presented at the company’s first Capital Markets Day on November 21, Grenergy added.