Banca March strengthens its sustainability co-investment strategy by committing €50m to Alantra Solar’s 1.8 GW photovoltaic vehicle through March SolEnergy

Banca March has launched March SolEnergy FCRE S.A., a new co-investment product developed in collaboration with Alantra Solar, to create a diversified 1.8 GW platform comprising over 40 photovoltaic plants located across Spain and Italy. A significant percentage of these plants will feature battery hybridization. The bank, along with its clients, will contribute €50m to the platform, in line with its strategy of backing companies dedicated to developing sustainable solutions for the energy transition.

Banca March and co-investor clients will participate in the platform through a European Venture Capital Fund (VCF) in the form of a public limited company, parallel to the vehicle structured by Alantra, and will join strategic investors Reichmuth Infrastructure and Amundi Energy Transition.

These vehicles will invest in the capital of N-Sun Energy S.L., a company that will gradually acquire more than 40 photovoltaic plants located across Italy (about 70%) and Spain (about 30%), key solar energy markets. The identified plants, currently under exclusivity, will be integrated into the portfolio during the Ready to Build (RTB) phase.

Strategic Alliance between Banca March and Alantra Solar in a Co-Investment Project

Banca March has selected Alantra Solar as its strategic partner for this project, recognizing its blend of financial and industrial expertise. Alantra Solar is one of Alantra’s asset management firms specialized in renewable energy and infrastructure investments, with Solarig as a partner. Alantra, the independent global mid-market financial services firm, oversees the project’s entire financing process, including equity and debt. Solarig, a company specializing in the development of infrastructure for the energy transition with more than 19 years of experience and operations in 12 countries, is currently developing all the plants. The last plants are expected to reach RTB status before the end of 2025.

The investment platform is expected to invest a total of €1.7bn, of which €700m will be equity, and the remaining €1bn debt.

The launch of this new co-investment product highlights Banca March’s commitment to align itself with the sustainability and carbon neutrality goals set by the European Union’s Green Deal. In recent years, the bank has introduced various innovative solutions and investment alternatives that integrate sustainability with profitability.

Ignacio Montero, Director of Banca March’s Co-Investment Unit, said: “The energy sector is currently undergoing a significant transformation, aiming to provide a more affordable, efficient, and sustainable energy supply to meet evolving and diverse demands. At Banca March, we are committed to supporting the expansion of renewable energy, particularly solar power, in response to our customers’ increasing preference for sustainability-focused products and services and the imperative of decarbonization.”

Javier Mellado, Managing Partner of Alantra Solar, added: “Following the recent milestone of securing €213m in debt financing from a bank syndicate for the development of the first batch of seven solar plants, the progress of our fundraising efforts marks another remarkable achievement. We are extremely proud of the support garnered from esteemed institutions such as Amundi Energy Transition, Reichmuth Infrastructure, and now Banca March. Their backing is a testimonial to our investment strategy.”

Co-investment, Banca March’s hallmark

Co-investment stands as the cornerstone and ultimate manifestation of Banca March Group’s dedication to its clients, inviting them to participate as partners in the same investment vehicles or projects. Aligned with this philosophy of shared interests, the private bank has co-invested with over 9,000 clients through its institutional SICAVs (Torrenova, Lluc, and Bellver) over the years. These liquid co-investment options boasted assets totaling €1.9bn by the end of 2023. Additionally, in the non-listed co-investment realm, since 2008, Banca March Group has committed over €2.64bn to illiquid assets, involving more than 2,100 co-investors.