Spain's Soltec bags EUR-100m funding to beef up asset management biz

January 17 (Renewables Now) - Spanish solar energy group Soltec Power Holdings SA (BME:SOL) has securing EUR 100 million (USD 108.4m) in financing to strengthen its asset management business as part of the vertical integration strategy.

The company said on Monday it had signed the financing agreement with a credit fund advised by Madrid-based real assets investment advisory firm Incus Capital.

The funding will bankroll growth of Soltec Asset Management, the group’s relatively new business division dedicated to investment, operation and management of renewable energy infrastructure. Soltec further said the transaction will help it build and operate some of the projects in the development portfolio in Spain, Italy and Brazil.

Soltec Asset Management was added in 2022 to complement the group’s offering as a solar tracker manufacturer and project developer.

“This deal allows us to vertically integrate and to begin to enhance the real value of our renewable business, while providing us with the necessary funds to continue with our ambitious roadmap for the coming years,” commented Soltec CEO Raul Morales.

The development division has some 13.7 GW of solar projects in different stages of completion as of September 2022. The unit operates in eight countries -- Spain, Italy, Denmark, Romania, Brazil, Colombia, the United States and Mexico.

This division develops projects up to the ready-to-build stage for sale either to a third party or to Soltec Asset Management. The Soltec group expects the asset management business to have a portfolio of close to 1 GW of assets by 2025, it said.

(EUR 1.0 = USD 1.084)