German renewable energy company ABO Energy has closed its first syndicated loan agreement worth €240 million (US$279.8 million) to develop and construct more wind, solar and storage projects.
The facility is split evenly across traditional loans, revolving working capital facilities and guarantee lines, with Commerzbank acting as lead arranger and six other banks participating. It will largely refinance existing loans and promissory notes, while providing additional liquidity to support the company’s expanding project pipeline.
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Dubbing the syndicated loan “an important step for the company,” Alexander Reinicke, managing director of ABO Energy said: “We are delighted to have secured the necessary funds to continue our successful course and develop and construct more wind, solar and storage projects. The syndicated loan confirms the financial community’s confidence and interest in our forward-looking company.”
The syndicated loan drew strong interest from new banking partners, with leading German and international institutions participating on standard market terms. Commerzbank served as sole bookrunner and agent, while Clifford Chance advised the banks and Noer advised ABO Energy.
ABO Energy had a 23.1GW development pipeline as of March 2024, with solar accounting for around 30% of the total capacity. The company develops, finances and builds solar farms, but typically sells them at or near commissioning rather than operating them long term, and has worked on large-scale projects such as a 79MW facility in Hungary and a 10MW project in Colombia.
In 2023, ABO Wind, a subsidiary of ABO Energy, sold a 100MW solar PV project in South Africa’s North West Province to an undisclosed investor.
The project formed the final third of a 300MW solar cluster, following the sale of the first 200MW in 2022. Fully developed, permitted and ready for construction, the project was acquired by an investor that signed a private power purchase agreement (PPA) with an undisclosed offtaker for the electricity generated.
