#United States #Texas #MUFG #Nomura #Greenalia

MUFG and Nomura Finance Greenalia's Solar Ambitions

In a significant move for renewable energy in the United States, Mitsubishi UFJ Financial Group (MUFG) and Nomura Securities International, Inc. (Nomura) have entered into an agreement with Greenalia S.A. to provide substantial financing for the Misae Solar Park II project in Texas. This deal, valued at $388 million, consists of a $295 million construction-to-term loan and a $93 million letter of credit facility, aiming to bolster the development of one of Texas' largest solar energy installations.

This is a notable achievement as Misae II represents Greenalia's inaugural venture into the U.S. market, following its reputation as a leading Spanish developer in renewable energy projects. The move not only solidifies Greenalia's expansion plans but also reflects a growing trend among global investors looking to tap into the U.S. renewable energy sector.

Louise Pesce, Managing Director at MUFG's Project Finance division, expressed her excitement about the transaction, stating, "We are thrilled to support Greenalia by leading this complex and successful transaction. Greenalia's innovation, partnered with MUFG's expertise, will significantly contribute to Texas's renewable energy capacity."

Nomura's Global Head of Infrastructure and Power Business, Vinod Mukani, echoed these sentiments, highlighting the collaborative nature of the project and how it aligns with the broader goals of renewable energy deployment. He remarked, "Our partnership with Greenalia allows us to offer tailored capital solutions, unlocking risk-adjusted returns for all stakeholders involved in this landmark project."

As a pivotal player in cleantech finance, Nomura has previously engaged with Greenalia on various projects, and this latest partnership signifies its ongoing commitment to supporting the renewable energy sector. Alain Halimi, a Managing Director within Nomura, stated, "Celebrating our partnership with Greenalia reaffirms our direction toward providing strategic financing solutions tailored for leading developers in renewable energy."

The Misae II solar project is set to cover an impressive 3,970 acres in Childress County, with an anticipated capacity of 430 MW-DC / 331.6 MW-AC. The project is expected to reach commercial operation by the third quarter of 2025, generating considerable renewable energy output for the Texan energy market. Approximately 65% of the energy generated will be secured under Power Purchase Agreements (PPAs) with ERCOT West, while the remaining energy will be sold directly into the merchant ERCOT market.

Manuel Garcia, CEO of Greenalia S.A., highlighted the significance of this financing package, stating, "This transaction marks a major milestone for Greenalia’s expansion within the U.S. and moves us closer to our goal of reaching 1 GW of operational projects by 2026. With the support of MUFG and Nomura, we are well-positioned to execute our business plan."

Antonio Fernandez-Montells, CFO at Greenalia, noted that the financing showcases the evolution of Greenalia as a key player in the competitive renewable energy landscape. He explained, "This funding addresses the critical capital needs necessary to launch the various projects that are currently under construction and positions us for future growth."

As the world increasingly shifts toward sustainable energy solutions, deals like this represent not only financial partnerships but also a commitment to fostering innovation and environmental responsibility. Through the collaborative efforts of MUFG, Nomura, and Greenalia, the Misae Solar Park II project stands as a testament to the potential of renewable energy development in transforming Texas's energy landscape.

With these robust financial frameworks in place, the outlook for the Misae II project appears promising, as stakeholders aim to make significant strides in renewable energy contribution, driving both economic growth and environmental sustainability in the Lone Star State.