Herbert Smith Freehills advises ACCIONA on CESCE-backed sustainable financing for Aldoga Solar Farm

Herbert Smith Freehills has advised ACCIONA Energía on a AUD$453 million sustainability-linked loan for the purpose of the development and operation of the 480MWp Aldoga Solar Farm located near Gladstone, Queensland.

The green syndicated loan facility is fully backed by CESCE, the Spanish export credit agency, and is granted by a consortium of international banks including Banco Santander, BNP Paribas, ING, and J.P. Morgan. Banco Santander acted as the CESCE Agent, while ING served as the ESG Coordinator.

Once complete, the Aldoga Solar Farm will feature 820,000 solar PV modules and is expected to generate enough clean electricity to supply nearly 185,000 homes.The project will prevent the emission of approximately 934,000 tonnes of CO2 annually.

Established under the ACCIONA Sustainable Impact Financing Framework and compliant with the Sustainability-Linked Loan Principles of the Loan Market Association, the financing also supports the development of regenerative agriculture programs for farmers in the area of the solar farm, with specific indicators to measure their impact and progress.

Lead energy partner, Gerard Pike said, “We are thrilled to have supported ACCIONA Energía in securing this innovative financing for the Aldoga Solar Farm. The involvement of CESCE and the successful syndication of this green loan underscore the project's alignment with global sustainability goals.

“HSF has worked with ACCIONA Energía on its Alodga project since the start and we look forward to seeing the continuing positive impact it has on the Gladstone region in Queensland and the renewable energy sector.”

Herbert Smith Freehills’ Projects, Energy & Infrastructure team in Australia was led by energy partner Gerard Pike, with support from senior associate Matthew Selth and solicitors Jeremy Soh and Stewart Stevenson. The Herbert Smith Freehills team in Madrid, led by Finance partner Armando Garcia-Mendoza with support from associates Jose Maria Faz and Blanca Gil, provided advice on the Spanish law aspects of the transaction.

Ashurst acted as legal adviser for the financiers.

The deal is another example of Herbert Smith Freehills’ market-leading work in sustainable financing, having also advised:

• ACCIONA S.A. on a sustainability linked loan for the purpose of the acquisition, development and operation of the 36 MW Kwinana Waste to Energy project in Western Australia.
• ACEN Australia on a series of green loan facilities to fund its growing pipeline of renewable energy projects in Australia.
• ANZ Bank, Westpac, Societe Generale on the project financing of Recurrent Energy’s 171MW Solar and 120MW BESS Carwarp Energy Park in Victoria.