Moncada Strengthens Renewable Energy Portfolio with New Funding
Deal News | Jan 27, 2025 | Finance Community IT - 1 Corporate M&A
Banco BPM, Banca Ifigest, with the backing of SACE, have provided a €20 million financing facility to ERM, a renewable energy company under Moncada Energy Group, to support the construction of seven photovoltaic plants in Sicily. The financing is secured by SACE's Green Guarantee and aims at funding costs incurred by Moncada in a full-equity execution throughout 2024. The plants will have a total capacity of 33 megawatts and are subject to a Power Purchase Agreement (PPA) with Axpo Italia, which is actively involved in solar and wind energy trading. Banco BPM served as the Bookrunner, Mandated Lead Arranger, and Financier, while Banca Ifigest took multiple roles including Agent and Depositary Bank. The partnership reflects their commitment to the photovoltaic sector. Fabrizio Bernazzani of Banco BPM emphasizes the bank’s dedication to supporting sustainable and innovative businesses. Massimo Pecorari of Banca Ifigest highlights the significance of this structured project finance. Raimondo Moncada of Moncada Energy Group notes this as a strategic move to double their installed capacity by 2026 following challenging periods. Axpo Italia’s Simone Rodolfi underscores the strategic partnership aiming for national energy system sustainability and decarbonization.
Sectors
- Renewable Energy
- Financial Services
Geography
- Italy – The geographical focus of the article, as the renewable energy projects are located in Sicily, Italy, and the financial entities involved are Italian.
- Europe – Relevant because the financing and strategic partnerships discussed have broader implications for European renewable energy markets, involving entities with European reach like Axpo.
Industry
- Renewable Energy – The article focuses on the development of photovoltaic plants, a key area within the renewable energy sector.
- Financial Services – The article involves banks providing financing and financial structuring services for the renewable energy projects.
Financials
- €20 million – The total financing amount provided to Moncada Energy Group for their solar projects.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Moncada Energy Group | Target company | Company | A group specializing in renewable energy, receiving financing for photovoltaic projects. |
| ERM | Subsidiary | Company | A subsidiary of Moncada Energy, involved in renewable energy projects. |
| Banco BPM | Financier and Bookrunner | Company | Provides financial structuring and leadership in the financing deal. |
| Banca Ifigest | Financier and Agent | Company | Involved in financial services for the project, acting in several roles. |
| SACE | Guarantor | Company | An insurance and guarantees company providing the Green Guarantee for the project financing. |
| Axpo Italia | Energy Buyer | Company | A part of Axpo Group, engaged in a Power Purchase Agreement for the solar energy. |