EIB, Natixis, and Sunprime sign €507 million financing for Italian solar and battery storage program

The €507 million financing for Project Sophocles in Italy represents a significant commitment to hybrid renewable energy, combining 290 MWp of solar PV with 350 MW of battery energy storage systems. This structure, supporting approximately 200 plants, allows for greater grid stability and dispatchability compared to standalone solar, addressing intermittency challenges inherent in renewable generation. Sunprime Holdings, as the promoter, benefits from a robust financing package that will generate 416 GWh of renewable electricity annually, sufficient for over 160,000 Italian households. The decision to locate most installations on industrial rooftops and existing commercial surfaces specifically aims to mitigate land use impacts, a critical consideration for large-scale renewable deployment in densely populated regions like Italy. Structuring the portfolio into 6 to 12 cross-collateralized clusters provides financial efficiency and risk diversification for the lenders across a broad asset base. The European Investment Bank (EIB) is providing up to €271 million, aligning with its mandate to finance projects supporting EU policy objectives, including sustainable development within the Union. Natixis Corporate & Investment Banking, a global financial institution with a strong focus on infrastructure and energy transition, joins the EIB as a lender, further solidifying its presence in complex project finance operations. Sunprime Holdings, as the borrower and promoter, secures the necessary capital to execute Project Sophocles, expanding its portfolio with a substantial hybrid energy program in Italy. Ashurst LLP, a global law firm with £879 million in FY23 revenue and 28 offices across 15 countries, provided legal counsel on the sell-side, leveraging its expertise in complex infrastructure and energy transactions. Legance, a law firm based in Spain advising renewables clients, acted as legal counsel for the buy-side, while KPMG, AON, ValeCap, and Praxi provided advisory services, underscoring the multi-faceted expertise required for a financing of this scale.