Market environment
The growing solar energy sector is contributing significantly to the transition towards more renewable energy in Europe. The solar market in the European Union is on a growth path. Several factors contribute to this development continuing for many years to come. As part of the member states' National Energy and Climate Plans (NECP), the European Union (EU) has committed to install 209 GW of additional solar PV capacity by 2030. At the global arena, initiatives such as the Paris Climate Agreement aim to generate one-third of energy through solar PV by 2050. Due to uncertainties in oil and gas supply, there is also a growing view that solar energy will replace traditional energy sources as one of the primary sources.

Issuer
aream has specialised in the asset management of solar and wind power plants for over 15 years. With a transaction volume of more than EUR 1.5 bn, aream is one of the leading asset managers in this market and has thus long been helping to drive the energy turnaround and make the energy supply cleaner. aream has over ten years of experience in various renewable energy markets. Coupled with broad expertise, the team's capabilities cover the entire renewable energy value chain, from project development and technical asset management of the plants to the structuring and execution of an exit strategy.

Investment strategy

Due to more attractive returns, more and more institutional investors are getting involved in the early stages of development for their long-term existing assets. The current financing with a volume over EUR 24m is intended to realise the early-stage project development; this includes services from securing land, necessary grid voltage analyses and approvals to the ready-to-build status of the plants. Repayment plus interest will be generated from refinancing the projects once they are ready for construction. In order to create an attractive risk-reward ratio for the investor, he will participate proportionally in the sales proceeds of the projects as part of the financing. The development financing of the solar plants has a term of three years. The funds only flow in partial amounts after predefined milestones have been reached.