Greenalia has disclosed to Spanish stock exchanges that it has repaid a loan for its 50 MW biomass project in Galicia. Noroeste Inversion Y Desarrollo, the majority shareholder of Greenalia, extended a EUR1.025 million (US$1.187 million) loan to the company in May which was to go exclusively to the contribution of funds for the biomass project.
In late July, the project reached financial close. Greenalia has secured long-term and mezzanine financing from the European Investment Bank (EIB), the Spanish state-owned Instituto de Credito Oficial (ICO), Banco Santander and Marguerite (provider of the mezzanine tranche) amounting to EUR125 million (US$144.7 million).
With this financing now closed, Greenalia has repaid the loan from Noroeste Inversion Y Desarrollo in full, as well as corresponding interest and cancellation fees. The loan had a 6.75% interest rate and a maximum term of 12 months.
The project involves the construction of a biomass-fired power plant in Curtis-Teixeiro, A Coruña province. Scheduled to commence operations in 2020, it is projected to generate 324 GWh per year from forest waste collected within a 100km radius of the facility.
