An unnamed developer has obtained mezzanine financing from a multi-investor debt fund managed by Prime Capital AG to support the realisation of an 80-MWp solar photovoltaic (PV) project in Brandenburg, Germany.
This was announced on Monday by Frankfurt-based independent financial advisory boutique Capcora, which served as the exclusive financial advisor for this transaction.
The junior debt of approximately EUR 11 million (USD 11.8m) will cover the late-stage development and construction costs of the project, optimising its procurement process particularly when it comes to acquiring long-lead items, the announcement notes.
"This junior financing is among the pioneering instances of its type in the German solar market. Frontloaded financing addresses crucial liquidity challenges in the industry, and we're pleased to demonstrate our commitment to addressing this issue within our domestic market," said Bernhard Hofmann, director at Capcora.
Construction work is expected to begin in the second quarter of 2024 and commercial operation is scheduled for April 2025. Subsequent arrangements for senior financing will be made with the advancement of construction.
The financing in this transaction comes from the Prime Sustainable Infrastructure Debt Fund (PSIDEF), currently at the fund raising stage for second close investors.
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