Case Study: Refinancing BlackRock’s diversified solar portfolio in the Taiwan market

22 Aug 2022

Learn how we helped with the first green loan arranged by BlackRock Real Assets in Asia Pacific.

Background

Solar PV is one of the most installed renewable technologies in the Taiwan market; a rapidly growing consumer of clean energy. BlackRock Real Assets’ Global Renewable Power Fund II owns a 186MW portfolio representing 42 diversified solar PV projects in Taiwan market. The projects comprise ground-mounted, floating and rooftop solar assets that BlackRock and New Green Power, a subsidiary company will manage. Each project is fully contracted and the entire portfolio generates a total of 270 million kWh of clean electricity annually that will provide power to 80,000 households for over 20 years.

Given the number and diversity of assets, BlackRock decided to optimise the capital structure. Therefore, a USD328m debt facility was restructured into a 18-year green loan divided among different lenders including Standard Chartered. Standard Chartered was  selected for this deal because of our extensive experience in financing the clean energy sector in Asia.

This financing facility is the first Green Loan framework undertaken for renewables portfolio financing in the Taiwan market, and also the first green loan arranged by BlackRock Real Assets in Asia Pacific.

Standard Chartered’s role

Standard Chartered acted as mandated lead arranger, interest rate hedging bank and green loan coordinator of the debt facility.

Deal structure

The final structure included a Debt Service Reserve Facility and a non-recourse holdco portfolio financing for renewables. The Green Loan Framework that was adopted for the financing is in line with the Green Loan Principles (2021).

This transaction is integral for optimising the capital structure of and a key milestone for BlackRock Real Assets climate infrastructure investment activities in the region.