Photosol obtains bank financing of €60 million

Photosol secures €60 million financing from BPI, BRED, and CIC to fund a portfolio of 8 solar parks totaling 67 MW, including its first two PPAs

Since 2008, Photosol has ranked among the top 5 leaders in solar energy production in France, with 421 MW across 91 installations in operation and 437 MW under construction. By the end of 2023, Photosol is finalizing the financing for its portfolio of 8 new solar parks, which have entered the construction phase, all developed and built by the group.

With unit capacities ranging from 2 MW to 20 MW, the portfolio includes the Bellac, Mainzac, Belvès 1, Belvès 2, Marillac 1, Marillac 2, La Rochefoucauld, and Pranzac parks. These represent an annual production of 84 GWh of 100% renewable electricity, covering the annual consumption of approximately 38,200 people (excluding heating), equivalent to a city like Chartres, Eure and Loir.

As the owner of all its parks, Photosol has integrated all the know-how that allows it to be present throughout the entire value chain. The group ensures the operation, maintenance, and operational management of these solar installations. The construction of the installations has begun. The two parks under a corporate PPA with Leroy Merlin will ultimately produce the equivalent of 17% of the annual consumption of France’s leader in home improvement.

This new financing led by a banking pool composed of BPI (40%), BRED (30%), and CIC (30%), who reaffirm their trust in Photosol and its development model.

“We are very pleased to have closed 2023 with this financing, which will allow us to build these 8 solar parks. With our banking partners, their advice, and our teams, this new financing confirms the need to accelerate the production of sustainable and competitive electricity. 2023 marks strong growth for Photosol in France and Europe, and this operation confirms our ability to rally investors thanks to the quality of our assets and our vision of shaping a sustainable energy future,” said David Guinard, CEO of Photosol.

“Bpifrance is very pleased to continue its support alongside Photosol, which has become one of the leaders in solar energy production in France in recent years. This new project perfectly fits into Bpifrance’s Climate Plan, a key part of our strategic plan since 2020, which aims to mobilize nearly €40 billion, among other things, to amplify funding for the renewable energy sector. Bpifrance has become one of the main financiers of this market, including for new models like Corporate PPAs, where Photosol is one of the pioneers,” said Hugues KEMAJOU, Financing Delegate at Bpifrance.

“It is a real pleasure for the BRED teams to accompany Photosol in its development. Through this financing, BRED reaffirms its support for the development of renewable energies and its commitment to the energy transition. We would like to thank the leaders and teams at Photosol for their trust,” said Xavier Darrieutort, Deputy Head of Asset and Project Financing at BRED Banque Populaire.

“We are very happy to support Photosol in the deployment of this portfolio of solar parks, which includes the first two Corporate PPAs for Photosol. These projects directly contribute to achieving national goals for decarbonized electricity production and represent a key sector for the energy transition and for Crédit Industriel et Commercial,” said Philippe Schatzlé, Head of Project Financing at CIC.

Participants in the transaction:

Lenders & Arrangers:

• Bpifrance
• Crédit Industriel et Commercial
• BRED Banque Populaire

Agent: Crédit Industriel et Commercial
Covering Bank: Crédit Industriel et Commercial
Advisors to Lenders:

• Legal (documentation): De Gaulle Fleurance & Associés
• Legal (legal audit): CMS Francis Lefebvre Avocats
• Technical: Everoze
• Insurance: ECA Assurances
• Financial Model: Sigée Finance
• Electricity Market Price: Baringa

Photosol’s Rate Advisory: FOREX Finance