AES Solar, which was formed to develop and operate utility scale solar installations, has eight operating power plants in Spain. The new 70 million-euro non-recourse debt facility is for five of its photovoltaic (PV) projects there.

“We are encouraged by our ability to close the financing in challenging credit markets. This accomplishment is largely the result of the intersection of good projects, good banks, and good people working hard on both sides of the deal,” said Robert Hemphill, AES Solar’s chief executive said.

The solar venture tapped Italy’s UniCredit Mediocredito Centrale and Dutch Rabobank for the financing deal.

“The transaction reflects UniCredit Group’s resolute commitment to AES Solar and to the renewable energy sector, which remains undeterred in spite of challenging market conditions,” said Massimo Pecorari, the Italian bank’s head of Project and Commodity Finance Southern Europe.

The financing is an initial margin of 255 basis points to the euro interbank offered rate, or Euribor, and is amortized based on an underlying 18-year tenor.

The financing represents the largest project financing completed in Spain for solar installations utilizing First Solar panels -- the thin film panels that are being used in three of the five projects.

"We are very happy to have been able to work with AES Solar to produce an innovative financing solution for this solar portfolio, matching both the innovative technology used and the challenging conditions we all face," Marcel Gerritsen, Global Head Renewable Energy and Infrastructure Finance of Rabobank.