BlackRock’s climate infrastructure business has closed its second solar refinancing deal in Taiwan worth $125 million, per a statement by law firm Linklaters on Tuesday, which acted as legal advisor to the deal.
The green loan facility will be used to refinance, recapitalise, and fund the construction of its wholly-owned subsidiary New Green Power’s portfolio of solar assets in Taiwan. The portfolio is owned by Global Renewable Power Fund III, a private fund managed by BlackRock’s climate infrastructure business through New Green Power.
BlackRock closed the Global Renewable Power Fund III worth $4.8 billion in April last year to invest in global climate infrastructure assets across Americas, Europe, and Asia. The fund was the third in BlackRock’s global renewable power fund series and their fifth fund overall.
BlackRock acquired 100% of Taipei-based solar developer New Green Power in August this year. The world’s largest asset management firm had initially acquired a majority stake in the company in October 2020.
Earlier this year in April, BlackRock’s climate infrastructure business had closed its first solar deal, worth approximately $328 million, to refinance a portfolio with an 18-year green loan facility.
The debt financing will be used in over 100 projects and sub-projects held by a number of operating companies, including ground-mounted, floating, and rooftop technologies, according to the announcement.
The lenders included two Taiwanese banks, Bank SinoPac and E.Sun Commercial Bank, and international banks BNP Paribas and Standard Chartered Bank, all of whom participated in its first solar deal in April. Credit Agricole CIB joined as a new lender in the second deal.
Taiwan aims to generate at least 60-70% of its total energy via renewable sources by 2050 as part of its net-zero ambitions, according to the National Development Council.
BlackRock and Singapore state investor Temasek announced last year they would partner to launch a series of late-stage venture capital and early-growth private equity investment funds that focus on achieving a net zero economy by 2050.