Solar energy financier BayernLB is supplying construction company Minstroy Holding JSC with €17.9 million for three new PV parks in southeast Bulgaria.
The 8.8MW project is being constructed in Gabarevo by Solea, a German PV systems supplier, and consists of three parks Pavel Banya (2.6MW), Chelnik (3.2MW), and Yambol (3MW). The export finance will cover 85% of the project costs, which includes development procurement, construction and installation of the parks.
The Bavarian bank granted the loan directly to Sofia-based Minstroy Holding JSC with a tenure of five years. BayernLB has a 12-year track record in financing renewable energy projects and is a leading financier to the wind and solar energy sectors.
The loan has public ECA cover from Euler Hermes Kreditversicherungs AG. It is the first time ECA has covered on-balance export financing for this type of transaction, which normally covers cash flow-based project financing.
Minstroy Holding JSC is one of Bulgaria’s largest construction companies, specializing in mineral resources and energy, infrastructure and mining construction. The company has built its own renewable energy production facilities in recent years and operates four hydroelectric power stations (3.5MW) and three photovoltaic plants (8.8MW).
Two more PV plants are in the project and construction phase. It expects the output from its energy production facilities will exceed 25MW by 2012.