The expansion project of the gigafactory of Catania 3Sun. The initiative, announced by Enel on 6 Februaryis one of the ambitious ones: by the end of the year the Sicilian industrial plant will double production and by 2024 it will become the largest solar panel factory in Europe, with a production capacity of 3GW per year from the current 200 MegaWatt, thanks to a investment of 600 million euros.
After the announcement, the time has come to move on to the operational phase and it is in this context that the signing of thefinancing agreement “non-recourse” with Unicredit, supported by the green guarantee of You know, aimed precisely at financing the expansion of the solar panel factory.
What the agreement between 3SUN, UniCredit and SACE provides for
3SUN and Unicredit, who acted as Structuring Mandated Lead Arranger, Global Coordinator and Bookrunner, signed the project financing agreement for a maximum amount of 560 million euro, divided between a 475 million euro senior term loan and a 85 million euro VAT loan, to finance the expansion of the 3Sun solar panel plant in Catania, Sicily.
The senior term loan benefits for 80% of the Sace's green guarantee, the insurance-financial group controlled by the Ministry of the Economy specialized in supporting businesses and the national economic fabric.
The investment will contribute to the development of Tango project (italian pv Giga factory) which will promote the latest generation of high-efficiency solar technology in Europe and contribute to reducing the continent's energy dependence,” Enel said in a statement.
From the Catania Gigafactory 3 Gw of panels and 5,5 Twh of renewable electricity per year
I 3 GW of panels which will be produced each year by the Gigafactory can generate up to approx 5,5 TWh of renewable electricity per year, which from a sustainability point of view have the potential to avoid the equivalent of almost 25 million tons of CO2 in their first ten years of operation. Similarly, the output generated by the gigafactory panels has the potential to avoid the purchase of almost 1,2 billion cubic meters of gas per year, replaced by renewable energy produced internally.
Francesco Starace, CEO and general manager of Enel: “By signing this long-term project financing we have achieved a another important milestone for the gigafactory, confirming the solidity and attractiveness of the initiative. The solar module factory we are building in Catania will be at the forefront in terms of innovative technology and automation of industrial processes and will contribute to the achievement of the EU targets of 40% energy consumption from renewable sources by 2030, as well as contributing to reduce energy dependence. With this project we are demonstrating the feasibility and scalability, also financially, of a sustainable industrial model that can be replicated for other factories of this type to be developed in other countries in the coming years".
Andrea Orcel, CEO of Unicredit, said: “We are delighted to have made a decisive contribution to the success of this operation, which will allow our country to have a high-tech production plant large enough to help significantly reduce dependence on fossil fuels”.
Alessandra Ricci, CEO of Sace, commented: “We are proud to continue supporting the Enel group, this time in Italy, and we are pleased to do so together with Unicredit for the expansion of the largest Italian solar panel factory. A strategic initiative that will contribute to reducing our country's energy dependence, developing domestic production in a high-tech sector and increasing employment in Sicily".
Bond Enel: new sustainable 8 and 20-year bond loan
But the loan for the gigafactory isn't the only news arriving today from Enel. The company launched the placement of a sustainability-linked bond loan i.e. related to sustainability. The issue will take place in two tranches, the first with a maturity of 8, the second with a maturity of 20 years.
The issue will take place in euros for an expected amount of least 500 million for each of the deadlines. According to the indications provided by Enel, the yield guidance for the short tranche (i.e. that a 8 years) is in the area of 145 basis points above the midswap rate, while for the longer tranche, the one at 20 years, the yield is in the area of 215 basis points above the midswap.
The expected rating for the security is:
- Baa1 from Moody's,
- BBB+ from S&P,
- BBB+ by Fitch.
The banks involved in the operation as bookrunners are Akros, Bbva, Bnp Paribas, Bper, Crédit Agricole, Caixabank, Citi, Commerzbank, Goldman Sachs, Intesa Sanpaolo, Ing, JpMorgan, Mediobanca, Morgan Stanley, Natixis, Santander, Société Générale and Unicredit .
