Kiwoom Sec in $236 mn refinancing deal on Spain solar plants

Kiwoom Securities Co. Ltd. and a South Korean insurance firm have underwritten 140 billion won ($118 million) in a debt on nine solar power plants in Spain, participating in a 280 billion-won ($236 million) refinancing package for the 38.3 MW solar portfolio.

Kiwoom and the unidentified Korean insurer recently signed a definitive agreement to provide 100 billion won and 40 billion won in the debt respectively, according to investment banking sources on June 16.

An unidentified German insurance company has underwritten the remaining 140 billion won.

Spanish fund manager Q-Energy operate the plants, completed around 2008.

The debt is expected to generate annual returns of around 3%, lower than other alternative investments’. But the returns will be guaranteed by the Spanish government until the maturity of 2038.

Kiwoom will sell it down to domestic institutional investors.

The refinancing came a few months after Q-Energy acquired a 30 MW solar portfolio comprising four operating solar plants located near Toledo, Seville and Tenerife in Spain from European investment firm Platina Energy Partners LLP for an undisclosed sum.

Last year a consortium led by Korea Investment & Securities Co. Ltd. reportedly provided UK-based Octopus Investments with 160 billion won in a solar portfolio refinancing package on 15 solar farms in southern England.

hiuneal@hankyung.com

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