MKM Invest Group (“Sponsor”), a Hamburg based independent power producer, raised a EUR 106m mezzanine debt financing for a portfolio of solar PV projects in Germany, France, and Spain with a total capacity of 579 MW (“Portfolio”) based on contracted and merchant revenues. The financing was provided by accounts managed by Prime Capital AG (“Prime Capital”). ENERPARC AG (“ENERPARC”), who has been developing and realizing the solar parks for MKM Invest Group, supported the fundraising on behalf of the Sponsor and will deliver the long-term asset management and O&M services for the Portfolio. Capcora acted as the exclusive financial advisor to the Sponsor during the entire process.
MKM Invest Group issued five individual bonds in a private placement. The overall subordinated financing scheme amounts to EUR 106m. The instrument is cross-collateralized by 94 PV projects of mainly operational assets as well as projects under construction.
German projects represent the majority in the Portfolio with a capacity of 367 MW followed by Spain with 108 MW and France with 104 MW. The Portfolio benefits from an attractive revenue mix, as it includes different feed-in tariff schemes in Germany and France, and PPA-backed projects in Germany and Spain.
According to recent market intelligence, the transaction is considered one of the largest mezzanine financings in Europe to date.
“This transaction raises a significant amount of liquidity and will provide capital for expanding the IPP presence of MKM Invest Group. It will also allow ENERPARC to pursue more project opportunities for MKM Invest Group and to accelerate its European growth strategy”, says Christoph Koeppen, CEO at ENERPARC.
“Through this transaction, our investor base gets access to cash flows from a large and diversified pool of attractive renewable energy assets with long-term visibility. This is the third transaction of its kind in less than 15 months for Prime Capital in this Private Debt sub-segment. We are delighted to support the development of MKM Invest Group and are looking forward to a fruitful collaboration”, says Andreas Kalusche, CEO at Prime Capital.
“This deal is setting a new benchmark in terms of subordinated infrastructure debt investments in the renewable energy sector. Implementing such a large amount of individual assets spread across three fundamentally different markets in a single transaction while balancing the cashflow profiles towards a risk-averse debt instrument is fairly unique in the market. We are very proud to have closely supported this deal from its first idea to closing“, says Alexander Kuhn, Managing Partner at Capcora.
MKM Invest Group was advised by Capcora as financial advisor and Luther as legal advisor. Prime Capital was advised by Simmons & Simmons as legal advisor, PKF Wulf & Partner for Financial Due Diligence, and Near Future Financial Forecasting for model audit.
About MKM Invest Group:
MKM Invest Group is a privately owned German investment platform for Renewable Energies. Founded in 2010 and headquartered in Hamburg, MKM Invest Group invests in renewable assets across Europe and plays a significant role in the transition to a carbon-free energy generation.
www.mkm-invest.de
About Prime Capital:
Prime Capital is an independent asset management firm and financial services provider. The company specializes in Alternative Investments, in particular in Absolute Return, Infrastructure, including Renewable Energies and Private Debt. Furthermore, the company offers Asset Management Outsourcing and Access Solutions. Prime Capital was founded in 2006, currently employs around 100 people in Frankfurt and Luxembourg and is regulated by BaFin and CSSF.
As of June 2020, Prime Capital has approximately EUR 17.7 bn Assets under Management, managed and administered.
www.primecapital-ag.com
About ENERPARC:
Headquartered in Hamburg, ENERPARC is a leading utility-scale photovoltaic company that covers the entire value chain. The services range from development to design, procurement and construction to operations and maintenance as well as asset management and energy trading. Founded in 2008, ENERPARC has become a global player with 250+ experienced employees and licensed partners in Spain, France, India, and Australia. ENERPARC has successfully commissioned projects with an overall capacity of 3.0 GW and is operating 1.9 GW.
www.enerparc.com
About Capcora:
Capcora is a consulting firm, specialized on real assets. Capcora procures equity, mezzanine and debt financing for energy and infrastructure projects, real estate, and medium sized companies. The focus is especially on mezzanine financing for the recapitalization of tied-up liquidity in operating assets as well as for bridge financing of developments and construction measures in the area of renewable energies (photovoltaics, onshore wind) and real estate through alternative financing sources.
www.capcora.com
