Natexis Banque Populaires plans on launching a club-style syndication in October of a portfolio of to-be-built French wind farms for sponsor Agrupación Eólica. The bank was awarded the mandate for the E70.5 million ($88 million) construction package several weeks ago and wants to syndicate the E55 million term loan slice of the debt to three to five lenders, says Pierre Dufaud, head of power at Natexis in Paris. The bank will invite lenders to take approximately E20-25 million of the term loan portion, he says, noting that terms and fees for the syndication still need to be hammered out.
Development is underpinned by a long-term PPA with partially state-owned Electricité de France (a division of EDF Group), which has an obligation to purchase power from renewable sources.
Early preparatory construction of the package of four wind farms totaling 48 MW will begin next month, but won’t commence in earnest until the sponsor receives its V90-2 MW turbines from Vestas sometime next year, Dufaud says, explaining the turbine manufacturer has a backlog of turbine orders, given robust wind farm construction in Europe.
In addition to the 15-year term loan, priced at EURIBOR plus 120 basis points, the cross-collateralized construction package consist of E3.2 million junior facilities and an 18-month E12 .3 million loan for VAT credits. The projects are known as Patay in Eure et Loire, Saint Barnabé in Côtes d’Armor and Ségur and Canet both in Aveyron. Each farm will generate about 12 MW.