Audax closes with the IKAV fund a first agreement of 40 million in photovoltaic projects
IKAV acquires 49% of the 69.5 MWp solar installations in operation, for a total amount of 8.8 million euros, which will mean its entry as a financial partner in the projects, also providing long-term financing for a total of 29.9 million euros to them.
Additionally, the investment fund will become a shareholder in the vehicle companies, providing the necessary financing to promote those photovoltaic generation projects with a total power of up to 160 MWp and that reach the Ready to Build (RtB) phase within the year 2022/ 2. 3.
Audax Renovables (ADX.MC), a vertically integrated Spanish energy group that generates and supplies renewable 100% electricity and gas with a presence in 9 countries, has incorporated the international fund IKAV as a partner in its portfolio of photovoltaic projects, thus giving visibility to the value of its active in the market and obtaining the necessary resources to continue with its ambitious medium and long-term strategic plan.
The Group, which has one of the highest quality pipelines in the sector, by locating its projects in those areas with the best resources in the technologies in which it is present, terrestrial wind and photovoltaic, materializes and enhances its portfolio of assets, which will mean an increase in the Group's billing and EBITDA levels.
The innovative operation includes several agreements of different kinds. Firstly, IKAV acquires, through one of its investment companies, a 49% stake in the capital of the Audax Renovables solar projects currently in operation (69.5 MWp) for an amount of 8.8 million euros. The accounting profit at Audax Renovables, SA, at an individual level, from this operation has amounted to 2 million euros. Additionally, Audax reserves the option to repurchase capital in the future.
In addition to the above, IKAV provides long-term financing in the amount of 29.9 million euros to these plants in operation, thus recovering Audax part of the invested capital, thus being able to allocate said funds to continue promoting other projects in the portfolio.
Additionally, both groups have an agreement that contemplates IKAV becoming a shareholder in the vehicle companies and providing the necessary financing for those photovoltaic generation projects with a total power of 160 MWp that reach the Ready to Build (RtB) phase within of the 2022/23 financial year.
Therefore, the association of both business groups can reach a perimeter of 230 MWp in which Audax Renovables will continue to consolidate and maintain control of the assets, thus strengthening its business model.
Through this operation, Audax Renovables gives new impetus to its renewable asset rotation strategy, maintaining the majority and control of them at all times, selling the energy produced to PPA and supplying itself in the most efficient way possible.
“We are very satisfied to incorporate IKAV as a solid and prestigious partner,” said José Elías, largest shareholder and President of the Board of Directors of Audax Renovables. “This transaction demonstrates once again the quality and attractiveness of our portfolio, accelerating the crystallization of value in operating assets, with the aim of reinvesting in new opportunities that help us achieve our Strategic Plan,” he added.
For his part, Emilio Camblor, COO of the IKAV group, stated, ”We are pleased to support a company as renowned as Audax Renovables in the growth of its renewable generation business in Spain. IKAV already has a very significant portfolio of renewable assets under management in the region and, therefore, this operation is perfectly aligned with our long-term investment strategy.”
For this operation, the company chaired by José Elías Navarro has had the advice of ING and J&A Garrigues, among other advisors.