Various news agencies and renewable energy news websites have reported that the European Investment Bank (EIB) and alternative investment firm Ben Oldman have entered into an agreement to co-finance 430MW of PV and onshore wind projects in Spain and Portugal. Specifically, EIB and Ben Oldman will provide EUR 100 million (USD 114 million) in unitranche loans to support project development during the period from 2021 to 2024.

EIB will be the lead lender to an investment fund managed by Ben Oldman, which will handle the origination of the loans. These loans will serve as interim financial support for project promoters and developers. They will be dispersed through special purpose vehicles that are created for project implementation.

The sum of EUR 100 million will be raised by EIB and Ben Oldman through the issuance of junior bonds. Each will be responsible for half of the total. EIB’s portion will be structured as the senior debt, while Ben Oldman will be the shareholder of the reserved investment fund. Ben Oldman will also subscribe some of the junior bonds.

The bridge loans are expected to accelerate development process for some renewable projects in the Iberian Peninsula, moving them from the ready-to-build stage to the operational stage. The additional 430MW of PV and wind generation capacity will be able to meet the electricity needs of more than 200,000 households. It will also contribute to Spain’s and Portugal’s efforts in achieving their climate targets. According to EIB, the injection of EUR 100 million will create 720 construction jobs as well as other local economic benefits.

The provisioning of the EUR 100 million is only part of a larger co-financing plan formulated by EIB and Ben Oldman. EIB aims to provide a total of EUR 200 million in 6-10 unitranche loans to at least three beneficiaries over the next three years.