Financing support for a PV-IPP project in Tunisia

Customer

reon AG, Lilienthal

Background 

Tunisia is actively promoting the expansion of renewable energies and offers attractive conditions for Independent Power Producers (IPP) with the "régime d'autorisation". Nevertheless, project financing remains challenging due to complex approval processes, currency risks and limited local capital markets.

In this environment, reon AG, an experienced German project developer for wind, solar and charging infrastructure projects, is planning to enter the North African market with the development of a 10 MW ground-mounted PV project. The project is based on a power purchase agreement (PPA) with the state-owned energy supplier STEG. 

In order to secure the financing, DFIC was instructed to arrange financing for the above-mentioned IPP. The advice was funded as part of the BMWE programme "Advisory Voucher Africa".

Objectives and approach

DFIC supported reon in developing a viable financing strategy.

These included: 

• Structuring of project development and ESG-compliant expenses (IFC standards)
• Analysis of suitable financing instruments and partners at national and international level
• Addressing potential financiers
• Accompaniment of financing discussions
• Optimization of the financial model

Results

DFIC was able to successfully win a financing partner. The latter agreed to provide combined equity and debt financing and issued a letter of intent (LOI) for the Tunisian Ministry of Energy.

Furthermore, the negotiations on equity and debt financing were supported on the basis of an initial term sheet.

We would be happy to support you in financing and promoting your investment projects in international markets. See also our financing advice service.

Please contact Dr. Jörg-W. Fromme for financing advice.