Luxcara raises debt for subsidy-free Spanish solar plant

German asset manager Luxcara has raised “Schuldschein” debt from two German institutionals to fund the construction of a subsidy-free solar farm in Spain.

The deal is the first of its kind to employ Schuldschein project bonds to finance a merchant project in Europe, the company said

In a statement, Luxcara said it had privately placed “a mid-double digit million-euro amount of senior secured loans as project bonds” with two pension funds from Germany, without revealing further financial details.

“What makes this project bond special is that it is the first time it has been structured to enable regulated institutional investors to refer to a specific asset class quota,” a spokesperson for Luxcara said.

“The demand for sustainable investment opportunities for available quotas is huge,” added Dr. Alexandra von Bernstorff, Managing Partner of Luxcara.

The projects bonds will finance the construction of Luscara’s 121MW Guillena-Salteras solar farm in Andalusia, which it acquired in 2018 from Solarig Global Services on behalf of asset manager’s third renewables fund, FLAVEO III Energy SCS, SICAV-RAIF.

Guillena-Salteras is backed by a power purchase agreement with Swiss energy trader Alpiq and is expected to produce enough energy to supply approximately 53,000 Spanish households with renewable energy.

Luxcara was advised on the transaction by CMS Hasche Sigle in Germany and CMS Albiñana & Suárez de Lezo in Spain. The lenders were advised by White & Case.