Omnigen Energy (“Omnigen”) and Appian Capital Advisory LLP (“Appian”) are pleased to announce that Omnigen has secured beneficial terms on a R$250 million financing from Itaú BBA to finalize the development of the portfolio of 20 small-scale solar power plants with a total capacity of 62.4MWp, located in Minas Gerais, Brazil.
Highlights
- R$250 million debt financing raised to fully fund the 20 small-scale solar power plants project through to production
- The financing is a key milestone as Appian looks to deploy clean energy solutions to reduce and off-set CO2 emissions across its portfolio in Brazil
- Development of 62.4MWp of low-risk solar power plants will indirectly offset carbon and energy price risk in Brazil portfolio, providing attractive, risk-adjusted returns
- Construction is over 50% complete and remains on budget
Appian performed a structured process with multiple parties and is pleased to be partner with Itaú BBA in this transaction. The financing will fund the remaining development costs across the plants, with the project now fully funded through to becoming operational.
The Company has executed definitive documentation with Itaú BBA for a R$250 million (US$50 million[1]) financing debt facility. The extensive technical, legal, environmental and social due diligence undertaken by the MLAs (mandated lead arranger) is a strong endorsement of the robust fundamentals and ESG practices of the project.
The project is a core element of Appian’s clean energy and mining adjacent strategy which supports the business’ ambitions to decarbonize its portfolio and simultaneously improve margins. The solar plants will reduce more than 14,000 tons of CO2 per year, which is the equivalent of planting 20,000 trees.
The energy pricing environment, low project risk execution and the fiscal benefits for solar generation in Minas Gerais will help the project deliver attractive risk-adjusted returns for Appian’s investors. Minas Gerais is the largest distributed generation market in Brazil with 2.5GWp already installed.
Omnigen is advancing with the project’s engineering, procurement and construction (“EPC”) program, with multiple workstreams progressing in parallel. The development of the solar plants is now 50% complete and remains on budget.
[1] Assumes a 5.0 BRL:USD FX rate
Michael W. Scherb, Founder and CEO of Appian, commented: “We are delighted that Omnigen has secured this financing, marking a significant step for the project’s future. As a leading investor in companies securing critical supply chains required for the energy transition, we believe that our portfolio should adhere to and set the highest ESG standards. This project is a core feature of Appian’s sustainability strategy and will deliver attractive risk-adjusted returns for our investors in the process.”
Milson Mundim, CEO of Omnigen commented: “I am pleased that we have been concluded the financing, which will fund and support the rest of the development of Omnigen’s portfolio through to becoming operational. We are pleased to partner with Itaú BBA, who stood out in our financing process. This important milestone recognises the progress achieved to date and endorses our ambitious strategy and vision for the project.”
For further information:
Omnigen Energy
+55 (31) 3360-1300 / [email protected]
Appian Capital Advisory
Andrew Todd, Head of Communications: +44 7990416759 / [email protected]
About Omnigen Energy
Omnigen is a solar energy supplier headquartered in Minas Gerais, Brazil. The company manages a portfolio of small-scale solar power plants in Brazil and is exploring developing opportunities in other regions.
The Company is a core element of Appian’s Clean Energy Strategy to support the business’ ambitions to ‘decarbonize’ its portfolio. The solar portfolio is expected to deliver attractive returns to investors in-line with Appian’s control equity strategy, as well as internalize Appian’s renewable energy skillset in order to roll out across both its existing portfolio and new opportunities. In addition to its planned projects in the state, Appian is currently evaluating opportunities for additional solar parks at its individual mine sites across the country.
About Appian Capital Advisory LLP
Appian Capital Advisory LLP is the investment advisor to long-term value-focused private capital funds that invest solely in mining and mining-related companies.
Appian is a leading investment advisor in the metals and mining industry, with global experience across South America, North America, Australia and Africa and a successful track record of supporting companies to achieve their development targets, with a global operating portfolio overseeing nearly 7,000 employees.
Appian has a global team over 80 experienced professionals with presences in London, New York, Toronto, Vancouver, Lima, Belo Horizonte, Montreal, Dubai, Johannesburg and Perth.
For more information, please visit www.appiancapitaladvisory.com, or find us on LinkedIn, Instagram or Twitter/X.
You can download a PDF version of the Appian press release here.