Independent renewable power producer Opdenergy Holding has secured EUR 50 million (US$52.6 million) in debt financing to back the development of solar projects in the US, Spain and elsewhere.

The Spanish power producer says it agreed two credit lines with Spain's CaixaBank. They will be extended under Opdenergy's green financing framework to enable the issue of letters of credit (L/Cs) and guarantees.

Expected usage

Specifically, the lines are expected to be used to issue guarantees for interconnection and power purchase agreements in the US and L/Cs for assets in Spain and elsewhere.

The new credit lines bring the total of Opdenergy's green financing programme to more than EUR 200 million. At the end of last year the developer registered its first green notes programme for up to EUR 100 million on Mercado Alternativo de Renta Fija, Spain's alternative fixed income market, and signed a EUR 62 million green finance deal with Banco Sabadell.

Green loan principles

Both credit lines under the new facility qualify as 'green' because they comply with the principles designated under the green loan principles developed by a working party consisting of representatives from recognised financial institutions active in global syndicated loan markets.

The principles aim to promote sustainability and provide clear environmental benefits.

This article represents the views of the author and not necessarily those of the ICC or Coastline Solutions.