Junior Finance Solar

Novar and Rabobank Project Finance have reached financial close on the extended junior financing structure to fuel Novar’s further growth. It provides Novar with the additional liquidity to fund further development, construction and operation of its substantial pipeline of energy transition projects in the Netherlands.

The financing structure is envisaged to cover more than twenty-five underlying renewable energy projects including solar farms, large scale solar thermal, floating solar, and battery storage. The projects’ equity dividends are collected on a holding company level and used as the basis for repayment of the EUR 65 million junior debt amount that is provided over time. This structure allows Novar to bring additional eligible projects into the financing after compliance with a predetermined set of criteria. This allows for accelerated growth and quick cash conversion for Novar, enabling continued expansion whilst keeping ownership of projects in the energy transition space.

The innovative junior debt facility, that was initially closed in the summer of 2020, has so far enabled Novar to accelerate its contribution to the Dutch energy transition. The increase in the facility that has now been agreed will further support Novar in achieving its ambitious goals.

Voltiq acted as financial advisor and exclusive arranger to Novar.