Spain's Banca March, Kobus Partners start EUR-200m renewables fund

January 25 (Renewables Now) - Spanish bank Banca March said on Monday it had joined forces with Madrid-based private equity manager Kobus Partners to launch a EUR-200-million (USD 225.8m) fund specialised in providing unitrance debt to finance the construction of renewables in the euro zone with a focus on Spain and Portugal.

The Kobus Asset Finance I SCA SICAV-RAIF fund, which starts with an initial amount of EUR 57 million, will support wind and solar projects with a capacity that is lower than 50 MW, the lender said.

Banca March will administer the funds, offering them exclusively to its own clients. The partners expect that the total investment volume of up to EUR 200 million will be enough to finance some 300 MW of wind and solar projects.

With unitranche debt, developers can finance up to 90% of construction costs at a cost slightly higher than a traditional bank debt. This type of financing does not require hedging contracts and can be refinanced after the third year, Banca March explained.

Kobus Asset Finance I will be backed by the European Investment Fund (EIF).

(EUR 1.0 = USD 1.129)