Interesting update
regarding 20% per annum
Santa Marta Solar Green Bonds
Hello, I hope you are well.
With news that a Portuguese Golden Visa fund is looking to purchase the entire Santa Marta project, taking bond investors out in 12 months time (with a coupon payment of 20% plus return of principal), the development risk part of this investment, has been significantly mitigated.
Initially plans were to move close to RTB stage over a three year period, returning investors their money plus a 60% coupon. However this latest news has not only brought the timescale of the investment horizon closer, but removed a significant part of the overall risk. Here is a little further information.
Santa Marta
The bonds are senior secured, with a pledge over the borrower's shares and a floating charge over the underlying assets, the latter of which have a determinable market value, based on a set price per MW (e.g. €165,000 per MW).
The market price for RTB ready projects is currently around €3-350,000 per MW hence there is a large potential uplift in developing projects such as Santa Marta, whilst still being able to cover development costs and pay investors a healthy net return.
CSM has secured the services of Shannon Energy as the originator and project developer. Shannon's expertise lies in identifying and acquiring early-stage sites at attractively low prices, then developing the projects further through the grid connection and build permit stages to secure finance for construction and energisation.
The invested funds will enable a highly experienced team to develop this existing 200MW "Acordo" approved site to a point at which it is considered "Ready-to-Build".
The team has the requisite local professional services contacts and experience to finalise the remaining terms with the environmental agency and municipality and to seek the necessary grid connections in order to declare the project to be RTB.
Best wishes, David
CONTACT DAVID ON THE DETAILS BELOW:
David Russell (LLBHons)
GLOBAL SALES DIRECTOR
T: +44 (0)131 618 8406 M: +44 (0) 7988 618 047
E: david@regalconsultancyinternational.com
www.regalconsultancyinternational.com
DAVID RUSSELL
GLOBAL SALES DIRECTOR
David was born in Edinburgh, Scotland, and attended the prestigious Law School at the University of Edinburgh, attaining an Honours Degree as a Bachelor of Laws.
Soon after graduating, David was headhunted by an overseas advisory firm, helping to build and develop offices in numerous locations throughout the world.
David runs the very successful consultancy firm DRC Ltd in Edinburgh and we are delighted to have him bring a diverse wealth of experience and knowledge to us here at Regal, as we take things to the next level internationally.
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