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Marguerite closes a EUR 23m mezzanine loan to finance a 50MW biomass plant in Galicia developed by Greenalia

30 August 2018

Luxembourg, 29/08/2018 – On 25 July, Greenalia secured a senior and junior debt package of EUR125m to finance its biomass electric power production plant being built in La Coruña municipalities of Curtis and Teixeiro (Galicia, Spain).

Marguerite will provide a EUR23m mezzanine loan to the project.

The senior debt will be provided by the EIB, ICO and Santander, a portion of which is being covered by insurance from the Finnish ECA, Finnvera. Santander acts as MLA and agent of the transaction.

The Curtis-Teixeiro biomass plant will have a capacity of approximately 50MW, to be built on a plot of 103,000m2, and will generate 324GWh per year from forest waste collected within a radius of one hundred kilometers around the new installation. To produce this energy, the plant will use about 500,000 tonnes of forest biomass a year. The project will therefore contribute both to forest maintenance in the area and fire prevention, by encouraging the collection, for industrial use, of small-sized wood waste that is normally discarded.

Once it becomes operational (planned for 2020), the Curtis-Teixeiro plant will increase energy generation from renewable sources and thus help to meet the targets of reducing carbon dioxide emissions set out in the National Action Plan of Renewable Energies (PANER) 2011-2020.

In addition to the positive environmental impact, this project will generate economic and social benefits, promoting job creation and economic growth in rural areas. 400 people have been employed for the construction of the plant. Once it is in operation, 35 permanent jobs and around 100 additional indirect jobs in the biomass supply chain will be created.

This project is one of the first to be implemented under the new regulatory framework for the industry approved in Spain in 2013. Greenalia was the winning bidder in Spain’s first auction for new renewables-based power generation facilities in early 2016, which will entitle the Curtis-Teixeiro plant to benefit from a 25-year regulated tariff.

William Pierson, Partner at Marguerite declared: “We are very pleased to have contributed to the success of one of the largest financings for a biomass project in Spain alongside Greenalia and the senior lenders.”

In this transaction, Marguerite was advised by Pérez – Llorca (legal), Arup (technical), Pöyry (commercial), KPMG (tax); Greenalia was advised by AtZ Financial Advisors (financial); senior lenders were advised by Watson Farley & Williams (legal), G-Advisory (technical), Aon (insurance) and KPMG (model audit).

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