Münch Energie receives junior debt for a 125 MWp solar portfolio in Germany

Münch Energie Group ("Münch Energie") secures a mezzanine financing of approximately EUR 21 million for a photovoltaic portfolio of approximately 125 MWp. The financial resources are provided by a German pension fund, which is managed by Prime Capital AG ("Prime Capital"). Via bearer debt, the EUR 21 million will flow to the group company Münch Kraftwerke GmbH & Co KG, which bundles the operational projects of Münch Energie. The transaction was actively supported by Capcora as exclusive financial advisor.

Münch Energie has issued a bearer bond as part of a private placement. The total subordinated financing volume amounts to EUR 20.7 million and is secured by 62 PV projects - mainly operational assets and some projects under construction.

Münch Energie, the owner-managed company based in Rugendorf, Bavaria, will use the financial resources to develop and expand further solar parks. The group of companies is one of the leading players in the renewable energy market with a focus on the construction of combined cycle power plants and holistic energy solutions for entire regions.

In addition to the complete handling of these energy projects, the company has also developed solutions that enable integrated animal husbandry and thus effective dual use. Battery storage, wind power, hydrogen and electromobility complement this portfolio and thus enable the complete switch of entire regions to a sustainable energy supply.

"Through this transaction, we were able to generate considerable liquidity to advance the energy transition at the urgently needed speed. In the long term, this will benefit the municipalities, citizens and farmers, with whom we would like to realise numerous projects in close cooperation. We are all the more pleased that we have been able to create the bridge between long-term security and a future-oriented and sustainable expansion of the energy supply through the trust of the pension fund," says Mario Münch, Managing Director of Münch Energie.

Münch Energie would also like to offer investors the opportunity to make a positive contribution to climate protection and the environment in the future. Trust as well as transparent and authentic security form the basis of this innovative cooperation and pave the way for a shared green future.

"This transaction marks another milestone in the development of mezzanine financing in the German renewable energy sector. The type of financing is gaining relevance and increasingly represents an essential pillar in the financing mix. However, the complexity of portfolio refinancing of operational projects, which differs from standard transactions, should not be underestimated. We are therefore particularly proud to have won Münch Energie as a trustworthy partner and to have closely supported the transaction from the initial idea to the successful closing," explains Bernhard Hofmann, Director in the Energy and Infrastructure division at Capcora.

Prime Capital was supported in this transaction by Simmons & Simmons as legal advisor and meteocontrol as technical advisor as well as Eight Advisory (tax) and EURO Transaction Solutions (insurance). On the side of Münch Energie, CMS acted as legal advisor and Capcora as exclusively mandated financial advisor.

About Münch Energie
Münch Energie stands for a sustainable, secure and affordable supply of green energy. Based on many years of know-how and innovative working methods, combined power plants are created that lead entire regions into energy self-sufficiency. Through individual solutions and 20 years of experience, a synergy is created between municipalities, farms, citizens and industry, which offers long-term ecological and economic advantages and sets up entire regions for the future.
www.muench-energie.de

About Prime Capital
Prime Capital AG is an independent financial services provider and asset management firm, focusing on institutional clients. The company specializes in Alternative Investments, in particular in Absolute Return, Infrastructure Investments and Private Debt. Furthermore, the company offers Investment Advisory Solutions and Access Solutions. Prime Capital was founded in 2006 and currently employs around 130 people in Frankfurt, London and Luxembourg. The company’s regulators are BaFin in Germany and the CSSF in Luxembourg. As of June 2023, Prime Capital has more than EUR 4.3 billion Assets under Management, as well as over EUR 8.6 billion Assets under Administration, managed on various platforms (as of 30 June 2023).
www.primecaptital-ag.com

About Capcora
Capcora is an independent financial advisory boutique specializing in M&A and project finance services to accelerate the energy transition in Europe. Founded in 2015, the Frankfurt-based company helps its clients succeed in the renewable energy and infrastructure sectors by advising them on sell-side and buy-side transactions, and by raising mezzanine, unitranche or senior debt.
www.capcora.com