Novar has secured €160m in HoldCo financing to support the development of new renewable energy initiatives.

The loan agreement includes an option for an additional facility of up to €100m, bringing the total available funding to €260m.

Copenhagen Infrastructure Partners (CIP) provided all lending for the transaction through its Green Credit Funds.

According to Novar CEO Gerben Smit, this financing step enables the company, with support from CVC DIF, to expand its asset base to around 1.4GW of operational assets by 2027.

Smit said: “The support from Copenhagen Infrastructure Partners’ Green Credit Funds highlights confidence in our business model, where Novar develops green energy systems including solar energy generation, storage, distribution and asset management.

“With CIP, we now have another strong financial partner supporting Novar’s continued growth and long-term ambitions. This transaction provides us with the financial flexibility to continue growing and delivering on our strategy.”

DNB Carnegie served as sole debt advisor on the financing while Voltiq acted as co-financial advisor.

Clifford Chance advised Novar as legal counsel and A&O Shearman acted for the lender.

BDO took on model audit duties, DLA Piper conducted legal due diligence and DNV handled technical due diligence.

CVC DIF managing director Dennis Jong said: “Since our investment in Novar at the end of 2023, the company has demonstrated strong progress and continued growth. This successful financing provides Novar with the resources and flexibility to further expand its operational portfolio and deliver on its targets.”

Last month, Ørsted agreed to transfer its entire European onshore business to CIP for DKr10.7bn ($1.69bn). CIP carried out the acquisition through its fifth flagship fund, Copenhagen Infrastructure V.

“Novar secures financing of $185m for renewable projects development” was originally created and published by Power Technology, a GlobalData owned brand.

The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.