Augusta & Co is delighted to have acted as exclusive financial advisor to Sunly, a leading IPP in the Baltics and Poland, to raise a €300m debt facility. The financing will help accelerate the construction of c.1.3GW of solar, wind, storage and hybrid projects across Estonia, Latvia, Lithuania and Poland.
This facility has been extended by Rivage Investment & Copenhagen Infrastructure Partners Green Credit Fund I (CIP), with additional participation from Kommunal Landpensjonskasse (KLP). The transaction demonstrates the availability of innovative solutions backing significant merchant exposure in fast growing IPPs.
The facility offers funding for up to 100% of the construction capex of Sunly’s near term portfolio as well as funding some development expenses with the goal of growing the platform to an installed operational capacity of 4.6GW in Poland and the Baltics by 2030.
Lili Kirikal, CFO at Sunly commented: “Augusta had an exceptionally wide role in this transaction, which started with an assessment of Sunly’s strategic options. The tailor-made non-dilutive instrument required alignment of many parties, including multiple credit funds as well as both small and large shareholders of Sunly. We were most appreciative of the Augusta team’s professionalism, enthusiasm, and creativity in arranging for this financing package. Their understanding of Sunly’s strategy, and their passionate approach for focusing on it throughout the negotiations, was the key to the success of this transaction.”
Romane Guitard, Partner at Augusta & Co commented: “We are delighted to have advised Sunly in raising this transformative growth capital, representing the company’s largest capital raise to date. We managed to structure a fully non-dilutive solution that will allow Sunly to fund additional 1.3GW renewable energy projects and accelerate the Company’s transformation into a multi jurisdiction IPP. This bespoke deal sets a new benchmark for growth capital funding merchant projects. In an era of increasing volatility, it’s exciting to see investors adapting their solutions to allow market leaders like Sunly to rapidly build their portfolio with an optimised revenue strategy.”
Charlie Hodges, Partner at Augusta & Co commented: “From the outset, our mandate was to limit dilution for shareholders whilst retaining flexibility for Sunly. In order to preserve optionality, we tested several different growth capital products before finally deciding on a pure credit solution. Over the course of the process, we saw encouraging levels of appetite from a wide range of structured capital providers keen to back fast-growing corporates with credible management and pipelines. This deal marks the latest, large transaction for Augusta’s growing infra debt business and we congratulate all parties on getting it over the line in August.”
Contacts:
Romane Guitard RGuitard@augustaco.com
Charlie Hodges CHodges@augustaco.com
Nikita Chandrashekar NChandrashekar@augustaco.com