Hana Financial joins $269 mn debt financing of two US solar power plants

Hana Financial Investment Co. Ltd. has underwritten $40 million of secured debt, part of $269 million debt financing to fund asset manager Capital Dynamics’ acquisition of two solar power plants in Monterey, California.

Swiss-based Capital Dynamics recently bought the 280 MW California Flats Solar Project in Monterey on the west coast of North America from First Solar Inc.

Of the $269 million debt, Allianz SE underwrote $160 million and Australian fund manager IFM Investors acquired $69 million, according to investment banking sources on August 24.

Hana plans to sell down the debt to South Korean institutional investors through a 25-year vehicle which would deliver an annual return of between 4.5% and 5%.

The project consists of the recently-completed 130 MW first phase and the 150 MW second phase which is expected to be completed by end-2018. It is fully contracted under 25-year power purchase agreements with Apple Inc. and Pacific Gas and Electric Company.

Hana has been aggressive in seeking US power project financing deals for resale to South Korean insurers and other asset owners in search of long-term stable investments.

Earlier this year, both Allianz and Hana participated in the $208 million debt financing for Capital Dynamics’ purchase of cash equity in the Moapa Southern Paiute Solar Project in Nevada from First Solar.

Hana expects to secure additional US solar energy projects, given that the California state plans to meet 50% of its electricity needs with renewable energy by 2030, up from the current 30%.

By Daehun Kim

daepun@hankyung.com