Real Assets

Prime Capital successfully closes two new junior debt financings, each in EUR double-digit million range

October 23, 2023

  • Sole lender in two independent junior debt financings in the Renewable Energy sector
  • Capital supports over 300 MWp of operational PV plants
  • Additional fundraising in progress

Prime Capital AG, the independent asset manager and financial services provider that has EUR 4.3 bn Assets under Management as well as EUR 8.6 bn Assets under Administration across different asset classes, is pleased to announce the successful closing of two separate junior debt financings. With these transactions, the manager has deployed more than EUR 350m through junior debt financing for renewable energy assets in continental Europe over the past 4 years, with further transactions in the pipeline.

In Q3 2023, Prime Capital was the exclusive lender in a private bond placement financing a solar PV asset owned and operated by Münch Energie. This placement, amounting to approximately EUR 21 m, offers Münch Energie fresh capital to augment its initiatives. The financing is secured through more than 60 projects, predominantly in operation and largely situated in Bavaria.

This was followed by another transaction to help financing assets owned by SUNfarming Group. Again, Prime Capital was the exclusive lender for a total volume in the EUR double-digit million range. The transaction is backed by a large, operational solar photovoltaic portfolio in Germany with approximately 185 MWp.

“We are profoundly honoured to partner with such distinguished and accomplished developers, owners, and operators in the Renewable Energy sector. We are strongly committed to support Münch Energie and SUNfarming on their growth trajectory and we are excited to support their efforts for more clean energy,” says Dr Werner Goricki, CIO at Prime Capital.

“Both transactions give our clients access to stable cash flows and contribute to the energy transition. Junior debt investments in infrastructure are an excellent complement to equity investments, as they offer immediate returns and excellent visibility of returns. We are looking forward to the collaboration with both companies”, adds Andreas Kalusche, CEO at Prime Capital.

Prime Capital is strongly committed to junior debt for infrastructure assets and has achieved the first closing for its Prime Sustainable Infrastructure Debt Fund (“PSIDEF”) in the summer of 2023. This multi-investor fund invests across renewable energy, social infrastructure, and digital infrastructure, as well as in further initiatives related to decarbonization, energy efficiency and clean transportation, offering a high cash yield to investors.

Throughout these transactions, Prime Capital was expertly assisted by Simmons & Simmons (legal advisory), Meteocontrol (technical advisory), Eight Advisory (tax considerations), and EURO Transaction Solutions (insurance).

About SUNfarming:

Since the company was founded in 2004, SUNfarming GmbH has covered the entire project development and EPC (Engineering, Procurement, Construction) value chain: starting with planning, development and financing, through construction to monitoring and maintenance of solar parks and related concepts such as especially Agri-Solar. The company has a long-standing customer structure of capital investors, municipalities, users of commercial and private own power plants as well as group-internal companies investing in solar plants. The team of experienced businessmen, engineers and technicians has already successfully realized a plant output of more than approx. 650 MWp. For more than 350 MWp in Germany and abroad SUNfarming takes over the technical management.

About Münch Energie:

Münch Energie stands for a sustainable, secure and affordable supply of green energy. Based on many years of know-how and innovative working methods, combined power plants are created that lead entire regions into energy self-sufficiency. Through individual solutions and 20 years of experience, a synergy is created between municipalities, farms, citizens and industry, which offers long-term ecological and economic advantages and sets up entire regions for the future. Possessing extensive expertise within the field of renewable energies, Münch Energy is setting new benchmarks constructing not only the largest innovative energy storage, but equally the most large-scale Tierwohl pholtovoltaic system throughout the whole of Germany. Being a future-thinking modern company, Münch Energy merges the power of nature in a holistic approach.

About Prime Capital:

Founded in 2006, Prime Capital AG is an independent asset management firm and financial services provider, owned by management and employees. The company takes a holistic, cross-divisional approach and specializes in Alternative Investments, in particular in Absolute Return, Infrastructure including Renewable Energies, and Private Debt. Furthermore, the company offers Access Solutions. Prime Capital was founded in 2006, currently employs about 130 people in Frankfurt and Luxembourg and is regulated by BaFin and CSSF.

As of June 2023, Prime Capital has approximately EUR 4.3 bn Assets under Management as well as EUR 8.6 bn Assets under Administration.

For additional information, quotes or requests please contact:

Prime Capital AG

Andreas Kalusche, CEO

Tel: 0049 69 9686 984 0

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