MKM Invest Group (“Sponsor”), a Hamburg based independent power producer, raised a EUR 106m mezzanine debt financing for a portfolio of solar PV projects in Germany, France, and Spain with a total capacity of 579 MW (“Portfolio”) based on contracted and
merchant revenues. The financing was provided by accounts managed by Prime Capital AG (“Prime Capital”). ENERPARC AG (“ENERPARC”), who has been developing and realizing the solar parks for MKM Invest Group, supported the fundraising on behalf of the Sponsor and will deliver the long-term asset management and O&M services for the Portfolio. Capcora acted as the exclusive financial advisor to the Sponsor during the entire process.
MKM Invest Group issued five individual bonds in a private placement. The overall subordinated financing scheme amounts to EUR 106m. The instrument is cross-collateralized by 94 PV projects of mainly operational assets as well as projects under construction.
German projects represent the majority in the Portfolio with a capacity of 367 MW followed by Spain with 108 MW and France with 104 MW. The Portfolio benefits from an attractive revenue mix, as it includes different feed-in tariff schemes in Germany and France, and PPA-backed projects in Germany and Spain.
According to recent market intelligence, the transaction is considered one of the largest mezzanine financings in Europe to date.
“This transaction raises a significant amount of liquidity and will provide capital for expanding the IPP presence of MKM Invest Group. It will also allow ENERPARC to pursue more project opportunities for MKM Invest Group and to accelerate its European growth strategy”, says Christoph Koeppen, CEO at ENERPARC.
“Through this transaction, our investor base gets access to cash flows from a large and diversified pool of attractive renewable energy assets with long-term visibility. This is the third transaction of its kind in less than 15 months for Prime Capital in this Private Debt sub-segment. We are delighted to support the development of MKM Invest Group and are looking forward to a fruitful collaboration”, says Andreas Kalusche, CEO at Prime Capital.
“This deal is setting a new benchmark in terms of subordinated infrastructure debt investments in the renewable energy sector. Implementing such a large amount of individual assets spread across three fundamentally different markets in a single transaction while balancing the cashflow profiles towards a risk-averse debt instrument is fairly unique in the market. We are very proud to have closely supported this deal from its first idea to closing”, says Alexander Kuhn, Managing Partner at Capcora.
MKM Invest Group was advised by Capcora as financial advisor and Luther as legal advisor. Prime Capital was advised by Simmons & Simmons as legal advisor, PKF Wulf & Partner for Financial Due Diligence, and Near Future Financial Forecasting for model audit.