GoldenPeaks Capital (GPC), a leading independent producer of green energy in Europe, has successfully secured financing for a portfolio of solar PV projects in Hungary with a total capacity of 64.5 MWp.
The senior financing was provided by Erste Group and Erste Bank Hungary, while the junior financing was backed by a fund managed by the French asset manager Schelcher Prince Gestion (SPG). Capcora acted as the exclusive financial advisor to GPC for securing the mezzanine financing.
GPC, which has established itself as a leading owner of photovoltaic systems in Poland, has now expanded into Hungary with this unique financing transaction. The portfolio consists of two individual solar projects located in northeast Hungary, currently under construction, with a total capacity of approximately 65 MWp. These projects will enter into long-term Power Purchase Agreements (PPAs).
The financing package was structured through parallel processes. The senior loan, split evenly between Erste Group and Erste Bank Hungary, was secured at the SPV level, while the junior financing was obtained at the HoldCo level. Tailored to the initial merchant nature of the projects, the financing structure includes a releveraging mechanism once the PPAs are signed. The junior financing starts higher with the option for downsizing, making this arrangement unique.
Daniel Tain, President of GPC, stated, “We’re delighted to have secured both senior and junior facilities for our projects in Hungary, marking another milestone in our history. Concurrently, we’re welcoming two new strategic lenders to our network, crucial for our mission to be a leading Independent Power Producer (IPP) in the Central Eastern European (CEE) market.”
Marcus Hinrich Fischer, Executive Director for Corporate Finance Solutions at Erste Group, commented, “Partnering with GoldenPeaks Capital, we have worked out a financial structure that provides more time and flexibility than usual to source and negotiate power purchase agreements with off-takers, a major commercial pillar of the project. Integrating junior debt from SPG into the financing provides further optimization.”
Sándor Végh, Head of Structured Finance at Erste Bank Hungary, added, “We are proud to be the financing partner of GoldenPeaks Capital for their first PV project in Hungary. We look forward to strengthening our relationship with additional projects.”
Alexis Sarrazin, Co-Head of the Infrastructure Transition Platform at SPG, said, “We are very happy to have initiated a partnership with GPC, a highly respected IPP in the CEE region. This innovative and tailored debt investment in Hungary showcases our investment team’s structuring capabilities and the strong commitment of our Article 9 Impact Fund to finance energy transitions in Europe.”
Bernhard Hofman, Director at Capcora, noted, “We are pleased to help engineer a tailor-made and unique financing scheme for GPC. This transaction combines both upsizing and downsizing elements and addresses the need to combine merchant and PPA financing schemes in one transaction.”
GPC was advised by Dentons, while Erste Bank worked with CMS, and SPG with DLA Piper and Ganado Advocates. DNV acted as a technical advisor to the lenders.
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