Companies controlled by Modus Poland Solar Fund I, a closed-end investment fund dedicated to informed investors and managed by Modus Asset Management, have secured EUR 58 million (PLN 257 million) in debt financing from a group of lenders consisting of BNP Paribas Bank Polska and PKO Bank Polski. The investment facility will be utilized to finance the acquisition of a 93 MW operational solar PV portfolio located throughout Poland.
The portfolio's revenues will be safeguarded through a combination of corporate power purchase agreement (PPA) and contracts for difference (CfD) auction tariffs. Additionally, alongside the investment facility, the lenders will furnish a bank guarantee for the corporate PPA.
“We are pleased to have such reliable and committed partners supporting us in our goal of accelerating the region's transition to renewable energy. We have been active in the Polish renewable energy market since 2018 and the accomplishment of such size debt financing proves us that we are on the right path. Poland is one of our core markets, where we are seeking further acquisitions in solar PV and onshore wind”, - says Povilas Pečiulis, CEO of Modus Asset Management.
“Financing green transactions, and in particular creation of new renewable energy assets, is one of the key elements of our strategy. This aligns with our “GObeyond strategy for 2022-2025”, where we aim to help our clients make a sustainable transformation as a leader in sustainable finance. We are therefore very pleased to have established a partnership with Modus Asset Management and to have participated in a comprehensive transaction covering a range of products, including a guarantee for the corporate energy consumer. We would like to thank the Client for their trust and our partners and advisors for their professionalism”, - says Łukasz Pobudejski, Head of Specialised Financing Division in BNP Paribas Bank Polska.
“PKO Bank Polski is the leader in financing the green transition in Poland. We are proud to support Modus Asset Management in the implementation of the RES projects, which is part of our policy of financing the development of renewable energy. As the largest Polish bank for business, we want to jointly counteract climate change and contribute to the transformation of the Polish energy system. This investment is another important step on the way to achieving the goal”, - says Marcin Majewski, Head of Corporate Customer Relations Division in PKO Bank Polski.
Modus Poland Solar Fund I is a closed-end investment fund that invests in operating solar power plants in Poland. The electricity generated by these plants is sold through corporate PPAs and CfD. Currently, the Fund owns over 113 MW of solar PV assets in Poland.
About Modus Asset Management
Modus Asset Management is a regulated and licensed management company with a focus on renewable energy infrastructure in the Central European region, delivering outstanding institutional-grade opportunities to investors while expediting energy transition in the countries of focus. To date, Modus Asset Management has launched 4 renewable energy-focused funds. Currently, its portfolio exceeds 260 MW of renewable energy assets across Poland and the Baltics. The portfolio is expected to grow by more than 600 MW and will include solar PV, onshore wind as well as battery storage.
More information: www.modusam.com.
About BNP Paribas Bank Polska
BNP Paribas Bank Polska S.A., which has been listed on the Warsaw Stock Exchange since 2011 is a member of the BNP Paribas banking group whose footprint spans 65 countries. In Poland, as a universal bank with a global reach, it provides services to retail customers and other segments including Wealth Management, microbusinesses, SMEs, and corporate banking. As it advocates green initiatives, BNP Paribas supports its clients in the transition to a low carbon economy, endeavours to curtail the adverse impact of its operations on the natural environment and inspires clients to make good financial decisions. The Bank also consistently pursues its strategy of financing businesses in Poland while also supporting investments of strategic importance to the country with a positive social, economic, and environmental impact. At the end of Q1 2023, the volume of sustainable financing reached PLN 7.4 billion.
About PKO Bank Polski
PKO Bank Polski is the undisputed leader of the Polish banking sector, with the value of its assets amounting to PLN 444 billion. In the first quarter of 2023, the bank generated PLN 1.5 billion in net profit. The company serves 11.7 million customers. It is the basic supplier of financial services for all customer segments, achieving the highest shares in the market of deposits, loans, and in the market of private investment funds. Thanks to the development of digital tools, including the IKO application, which is actively used by 7.4 million customers, PKO Bank Polski is the most mobile bank in Poland.