Deutsche Bank, the European Investment Bank, and Rabobank announced that they have arranged financing for the largest solar energy plant in Andalusia, and one of the most powerful in Spain.

The Cabrera solar project includes the construction and operation of four solar plants. Each plant will have capacity to generate 50 megawatts (MW) of electricity and will be located in the Seville municipality of Alcalá de Guadaira.

The EIB estimates that the four plants will provide enough clean energy to supply nearly 145 000 households per year and will contribute to reducing CO2 emissions by 300 metric kilotons CO2-equivalent per year.

Deutsche Bank acted as sole structurer for the climate financing project and contributed 25 percent of the 90 million euro aggregate facility, while the EIB announced that is investing €43.5 million. Deutsche Bank also arranged interest rate hedging for the entire transaction. Rabobank contributed to the financing as well.

Deutsche Bank and Rabobank have been active this year in their climate finance efforts. Deutsche Bank announced that it had led three green bond issues last week, and it has been climbing in the ranks of green bond issuers, reaching 7th place in Q2 2020 with market share of 4.1%, up from thirteenth position and a 2.1 percent market share at the end of last year. Rabobank announced late last month that it had raised €20m for the development of two utility-scale solar projects in the Netherlands by Solarcentury, who is also responsible for the development of the Andalusian project.

Paolo Gentiloni, European Commissioner for the Economy, said:

“With the EU’s financial support, almost 145,000 Spanish households stand to benefit from clean energy, drastically reducing the CO2 emissions of the Andalusia region. The project will also provide the construction and engineering sector with 350 jobs in the short term. With every investment of this kind, we take another step closer to our goal of making the European Union climate neutral by 2050.”

Deutsche Bank’s head of Financing Coverage in Spain Jesús Medina said:

“By financing projects like this we not only contribute to achieving the European Union’s objective that 20 percent of the EU’s energy is sourced from renewables, we also support a more sustainable economic recovery in our country after COVID-19.”

Dr. Dierk Paskert, CEO of Encavis AG, holder and operator of the Spanish solar park, said:

“Thanks to this cooperation we are able to realise the Spanish large-scale solar project La Cabrera. The attractive conditions in Spain ensure competitive and predictable prices for the purchasers of green electricity and at the same time are making a significant contribution to improving climate conditions.”