Vauban Infrastructure Partners Refinances its Spanish Biomass Fueled District Heating Networks Platform

Vauban Infrastructure Partners announces the closing of a €49m refinancing of its Spanish biomass fueled district heating networks platform (“Lockport”) with SCOR Investment Partners as sole lender. The refinancing has been contemplated through a combination of two facilities: one to refinance the existing debt at SPV level and one to fund capex to further develop the networks. Vauban’s ability to raise debt to optimize the financing structure is a major factor of confidence in our business model and competitiveness in one of the core regions for Vauban, Spain.

Lockport is composed of four biomass-fueled district heating networks located in Central and Northern Spain. The four assets reached their commercial operation date between 2015 and 2020 and have developed successfully since then, connecting new clients to the networks.

In late 2021, Vauban acquired a 100% stake in the four networks, focusing on long-term, sustainable value to all the stakeholders and thus demonstrating a strong commitment to asset development. In order to support the development of the assets, Vauban launched the refinancing process early 2022.

SCOR IP is providing 100% of both facilities for a total amount of €49m.

The first facility will be used to repay existing small-sized facilities at asset level and the second facility will fund capex necessary to the further development of the district heating networks. This will allow Lockport to extend its offering of an alternative to natural gas fueled individual boilers usually used by households in the current context of energy crisis. Overall, the refinancing will further strengthen Lockport’s financials robustness.

Vauban’s financial advisor was Arcano Partners, Uria Menendez acted as legal advisor to the borrower and Herbert Smith Freehills as legal advisor to SCOR IP.

Sanne acts as the facility agent. Ester provided advisory on rate fixing strategy. KPMG Spain supported Vauban for the financial, accounting and tax due diligence. Business Integration Partners (BIP) assisted Vauban for the commercial and technical due diligence and Marsh for the insurance due diligence. BDO performed the model audit.

Adeline Morin, Investment Director - Partner at Vauban Infrastructure Partners comments: “Through this landmark operation, Vauban Infrastructure Partners strengthen its presence in renewable energy by supporting the development of district heating networks using local biomass supply. This refinancing, supported by SCOR Investment Partners achieves another one of Vauban’s goals, being to develop its sustainable platform in the Spanish district heating market.

Pierre-Gilles Diat, Vice President at Vauban Infrastructure Partners comments: “Despite a stressed macroeconomic environment, Vauban achieved an optimized refinancing which will provide the capacity and the flexibility necessary for the development of the networks. This represents an important milestone in Vauban’s investment strategy in Spain, one of its core regions.

Paola Basentini, Head of Infrastructure at SCOR Investment Partners comments: “SCOR Investment Partners is glad to provide the financing of Lockport district heating networks. This project, diligently managed by Vauban Infrastructure Partners, is fully aligned with our sustainable investment strategy, and will contribute to achieve European decarbonization goals”.

For further reading:

• Vauban Infrastructure Partners Announces the Signing of an Agreement for the Acquisition of a Leading District Energy Platform Located in the United States