The European Investment Bank (EIB) has signed a Memorandum of Understanding (MoU) with investment manager Ben Oldman for the provision of a €100 million loan which will be directed towards expanding renewables capacity in Spain and Portugal.
The loan will be issued in tranches to project developers via a Ben Oldman-managed investment fund between 2021 and 2024 to fund the construction of 430MW of new solar and wind energy capacity.
The funding will be used to provide bridging loans to cover a financing gap within the renewables space to help project developers speed up their initiatives from ‘ready to build’ stage to the operational phase.
The loan will enable the addition of electricity capable of powering over 200,000 households and help Spain and Portugal move closer to renewable energy installation and climate mitigation targets.
The renewable projects are expected to help ensure energy security as well as revive the economies through the creation of 720 jobs.
The loans will target projects in less developed regions in a bid to ensure energy affordability in these regions and a just and inclusive energy transition, according to the EIB.
