MYTILINEOS reached financial close on its Australian projects

This 120 MWp portfolio (40 MWp each project) was acquired in 2019 as part of MYTILINEOS’ strategic entry to the Australian market, one of the most demanding and competitive markets in the world, where access to "clean" energy is still in demand for many large companies. These solar parks will produce 220 GWh annually, to power Australia's electricity system, reducing 180,000 tons of carbon dioxide emissions per year.

The majority of the power produced and of the Large-Scale Generated Certificates (LGCs) from the three projects are sold under a 10 year “Green” Power Purchase Agreement (PPA) with Coles, a major Australian food and grocery retailer with more than 2,400 stores nationwide.

Despite the adversities and difficulties imposed by the covid-19 pandemic, project construction was successfully executed by MYTILINEOS’ Renewables & Storage Development (RSD) Business Unit and was completed in the first half of 2021, proving the company's ability to carry out demanding projects. 

The financing is structured in such a way that allows money to be drawn for each project at its respective Commercial Operation Date (COD) and comprises a AUD95m term loan for the project and AUD9m for ancillary facilities. This is MYTILINEOS’ first project financing in Australia, and the first project financing of solar PV projects by the MYTILINEOS’ RSD Business Unit.

Linklaters Allens acted as borrower counsel, White & Case as lender counsel, DNV as LTA, Baringa as market advisor, Willis Towers Watson as insurance advisor and Ernst & Young as tax advisor and model auditor.

The remaining projects of the Australian portfolio are reaching the maturity stage and will be ready to start construction during 2022, further consolidating MYTILINEOS’ position in the wider Australian and Pacific market.