Corsica Sole and SG Bank sign a financing agreement for a mixed portfolio of 17 projects combining Corporate PPAs and grid injection for a total of €18 million in mainland France and overseas territories.
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The financing, obtained from SG Bank with the assistance of financial advisory firm Monte Cristo Advisory, will enable independent French renewable energy producer Corsica Sole to finance the development of 17 solar energy projects with a total capacity of over 21 MWp. The projects will come on stream between late 2023 and late 2024 and will generate more than 18 GWh of green electricity per year, saving 11,000 tonnes of CO2 per year.
An operation at the heart of the energy transition.
Corsica Sole, a specialist in photovoltaic and storage projects, particularly in island areas, announces the successful bank closing of its portfolio of 17 photovoltaic projects[1] located in the South, the Grand-Est, Réunion and French Guiana. With this €18 million in financing obtained from SG, Corsica Sole is continuing to fully support companies in the energy transition of their regions and in the decarbonisation of their activities.
Within this group of projects, SG will finance a ground-mounted power plant in the south of France, accompanied by a Corporate PPA[2] that will enable a steelmaker to supply electricity to its French production plants. This will provide the manufacturer with a secure supply of renewable energy and limit its exposure to market price volatility for a period of 20 years.
Fifteen solar power plants will be built overseas (in French Guiana and Réunion), combining agrivoltaic projects with more traditional rooftop projects. This diversity confirms Corsica Sole’s expertise in carrying out projects with a wide variety of technical, geographical and economic specificities. In addition, these island solar power plants will help develop the local economy and promote the energy independence of overseas territories.
Corsica Sole: €18 million to continue its development thanks to committed partners
The senior debt was fully underwritten by SG, which acted as Arranger, Lender, Credit Agent and Lead Bank for the transaction.
We are delighted and proud to support Corsica Sole in this initiative combining Corporate PPA and projects in overseas territories, and we thank its teams for their continued trust. This initiative is fully in line with SG’s CSR strategy of supporting industries and companies committed to the energy transition by providing them with responsible and innovative financial solutions.
After an initial closing with SG in 2022, Corsica Sole is delighted to renew its confidence in teams that are committed and expert in structuring projects that are sometimes complex. This first agreement makes it possible to finance a project for which the State is not the counterparty, thus proving the adaptability of our financial partners. Today, we are pleased to have been able to aggregate new types of projects with traditional financing conditions. This portfolio effect optimises financial structuring and thus anchors our commitment to energy transition at the heart of the regions. With our expertise, we will always stand alongside companies seeking to decarbonise their activities.
Corsica Sole was assisted in structuring the transaction by financial advisory firm Monte Cristo Advisory, which helped develop the structure, financial modelling and bank tender, and provided support right through to closing.
We are delighted to have supported Corsica Sole as financial advisor in the financing of this first major Corporate PPA. We have developed a truly innovative structure, tailored to Corsica Sole’s future development needs.
[1] Of the 17 projects, 15 are located in non-interconnected areas (NIAs) in Réunion and French Guiana, and two are in mainland France.
[2] Corporate Power Purchase Agreement: A PPA is a contract that allows a consumer to meet part of their needs by purchasing green electricity from a renewable energy producer (wind, solar, hydro) with price visibility for the entire contract period.
