Soltec signs $108 million deal with Incus Capital to strengthen asset management business
Solar tracker providers Soltec has signed financing agreement worth 100 million euros ($108 million USD) with Incus Capital to fund its renewable asset management and exploitation business.
Through this agreement, Soltec seeks to add value to and speed up the growth of Soltec Asset Management, its business division dedicated to the investment, exploitation and management of renewable energy assets, and guarantees the construction and operation of some of the projects in the project development portfolio, mainly in Europe (Spain, Italy) and Brazil.
The company announced this new division in 2022 to gradually become an independent power producer (IPP), within the vertical integration strategy included in its 2022-2025 strategic plan. Soltec has two other business divisions focused on industrial and project development initiatives.
“This deal allows us to vertically integrate and to begin to enhance the real value of our renewable business, while providing us with the necessary funds to continue with our ambitious roadmap for the coming years,” said Soltec CEO Raúl Morales.
Soltec has retained Mirabaud as financial advisor and Uria Menéndez as legal advisor. Incus Capital has had Taiga Mistral as technical advisor and Linklaters as legal advisor.
Soltec’s development division has a pipeline that totals 13.7 GW of projects (as of September 2022) at different stages of completion, and is present in eight countries: Spain, Italy, Denmark, Romania, Brazil, Colombia, the United States and Mexico.
The development division’s target is to develop the projects up to the ready-to-build (RTB) stage and then sell the assets to a third party or to Soltec Asset Management, which is expected to have a portfolio close to 1 GW by 2025.
Currently, 117 MW are in operation corresponding to two projects in Spain and Brazil, and the company has 112.5 MW under construction in Brazil in the form of the Araxá project (Minas Gerais, Brazil), and 5 MW in Spain, set to be completed in 2023.
Soltec began the execution of its 2022-2025 strategic plan last year. Through its asset management division, the firm expects to obtain an additional revenue stream from the sale of energy that provides recurrence, strength and stability to the company.
Soltec expects to achieve revenues between 780-840 million euros through its three lines of activity (industrial, project development and asset management).
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