SunPower has closed its €195.2 million solar bond issuance for its 44MW Montalto di Castro park in Italy. The proceeds will be used to fund further development of the facility, which is scheduled to be sold before the end of the year.
“This is the world's first publicly rated bond issue for a solar project, as well as Italy's first rated project bond. It opens up a new global-scale pool of capital to fund solar projects beyond traditional project financing from banks,” said Dennis Arriola, SunPower CFO. “Achieving investment grade ratings is a milestone for the solar sector and further demonstrates the bankability of SunPower's turnkey solar energy systems. Our success is a culmination of an exhaustive due diligence process which resulted in various independent parties recognizing the technical, financial and operating expertise that SunPower delivers.”
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The solar bonds were issued in two classes: A1 bonds of €97.6 million in fixed rate notes paying 5.715% and due in 2028; and A2 bonds of €97.6 million in fixed rate notes paying 4.839% and due in 2028. The A1 bonds benefit from a loan guarantee by the Italian Ministry of Economy and Finance-backed SACE group and its Aa2 credit rating from Moody's. The class A2 bonds have been rated Baa3 from Moody's and were purchased by the European Investment Bank.
