The European Bank for Reconstruction and Development (EBRD) announced on Friday (1 March) that, together with French asset manager Eiffel Investment Group (Eiffel), it is extending a joint loan of 45 million euros to PL-SUN.
PL-SUN is a holding company incorporated in Poland for the purpose of constructing and operating a portfolio of solar plants. It is owned and sponsored by Lithuanian closed-end investment company UAB Atsinaujinančios Energetikos Investicijos (AEI), focused on renewable energy investments and managed by Lords LB Asset Management. AEI currently operates a portfolio of around 250 megawatts (MW) in Poland and Lithuania.
“This transaction is very significant for the development of Lords LB Asset Management portfolio of solar projects in Poland. I am glad that it not only contributes to the development of our renewable energy infrastructure in Poland but also meets the country’s green energy strategic goals,” said Andrius Stonkus, Partner and CIO at Lords LB.
The construction bridge financing loan, which will be made up of equal contributions of 22.5 million euros from each institution, will finance the construction of a portfolio of 16 solar photovoltaic power plants with a total installed capacity of 114.7 MW across Poland, the EBRD said in a press release.
The plants are expected to generate a total of 122.5 gigawatt hours (GWh) of electricity and lead to savings of 88,000 tonnes of carbon dioxide emissions annually.
“Unlocking additional financial resources for the renewables sector in Poland is crucial to meet the country’s ambitious green transition targets. I am particularly pleased that this first project under the EBRD and Eiffel partnership will – thanks to the efforts of Lords – increase the renewable energy generation capacity in Poland and support the country’s shift to a greener, more sustainable energy model,” said Elisabetta Falcetti, EBRD Regional Head for Poland and the Baltic states.
The loan is the EBRD’s first construction bridge loan to date, the bank noted in the press release. Construction bridge loans provide short-term capital for the construction of renewable energy assets, helping to address the financial constraints developers face when financing from institutional investors is limited or unavailable.
This is the first project co-financed under a new partnership between Eiffel and the EBRD. The two institutions signed a memorandum of understanding in December 2023 outlining their cooperation in exploring co-investment bridge financing to accelerate the deployment of renewables across Central and Eastern Europe.