KENTA CAPITAL has acted as Hedging Advisor & Coordinator to Elawan Energy in the design, structuring and coordination of the financial hedging strategy associated with the approximately €760 million financing of Project Himalaya, one of the largest renewable energy project finance transactions ever completed in Spain.
The transaction marks a significant milestone for Elawan Energy, strengthening the company's financial position and providing the resources needed to accelerate the development, construction and operation of renewable energy projects across its core markets. It also represents a strong endorsement of the company's long-term strategy and the quality of its renewable asset portfolio.
The financing, arranged with Banco Santander and Banco Sabadell, has been structured as a non-recourse project finance transaction covering more than 1.3 GW of renewable energy capacity. It includes the refinancing of a portfolio of approximately 1 GW of operating renewable assets, together with a new 300 MW greenfield tranche currently under construction and development, primarily focused on hybridization projects. The assets are mainly located in the Spanish regions of Castilla y León, Castilla-La Mancha and Aragón.
One of the transaction's most innovative features is the inclusion of financing for large-scale Battery Energy Storage Systems (BESS), a technology with very limited precedents in the Spanish project finance market. The financing structure also includes an approximately 2 GW accordion facility, allowing future renewable assets from Elawan Energy's development pipeline to be incorporated into the financing, thereby providing additional flexibility to support the company's continued growth. A significant portion of the portfolio is backed by long-term Power Purchase Agreements (PPAs), providing enhanced revenue stability for the project.
In this transaction, KENTA CAPITAL acted as Hedging Advisor & Coordinator, advising Elawan Energy on the structuring and coordination of the financial hedging strategy associated with the financing and supporting the effective management of the financial risks inherent in a transaction of this scale and complexity.
From the financing perspective, Banco Santander acted as Mandated Lead Arranger and Sole Underwriter, while Banco Sabadell served as Mandated Lead Arranger. Clifford Chance acted as legal counsel to the lending banks, Watson Farley & Williams advised Elawan Energy as legal counsel, and Enertis Applus+ served as Technical Advisor.
According to Pedro García Crespo, Chief Investment Officer of Elawan Energy, the financing "strengthens the financial resilience" of the company's operating portfolio in Spain while providing "the flexibility required to continue growing through the hybridization of our assets," reinforcing Elawan Energy's long-term strategy as an independent renewable energy producer.
Owned by the Japanese group ORIX, Elawan Energy currently operates in 15 countries, with more than 2 GW of installed capacity in operation, nearly 700 MW under construction and a development pipeline exceeding 11 GW.
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