youmex AG finances and sells a 20 MW
large-scale solar power plant in Germany

15.10.2012

youmex AG, Frankfurt, placed the Elsterheide solar power plant with a capacity of 20 MWp , located in Saxony and completed at the end of 2011, with an institutional investor. youmex AG also arranged the long-term project financing necessary for the sale transaction. The purchase price and the financing amount were paid simultaneously at the beginning of October 2012. The parties have agreed not to disclose any details about the purchase price and the financing amount.

Sunowe Solar GmbH, Nuremberg, the European branch of the module manufacturer SUNOWE Photovoltaic (Zhejiang Sunflower Light Energy Science & Technology LLC) listed in China, erected a photovoltaic solar power plant in a conversion area in Elsterheide. It equipped this power plant with high-performance SF 156x156-60-M monocrystalline Sunowe quality modules.
 
Sunowe continues - beyond the mere marketing of modules - to follow its path of securing the sale of its products by developing more of their own projects and through the construction of solar power plants. The power plants equipped with Sunowe modules are handed over to investors after they were commissioned.
Investors normally require a long-term project financing to acquire a power plant. So they only buy "subject to finance". Without a financing it is not possible to carry out a successful sale process. As an arranger and transaction manager, youmex AG is a specialist in the development of financing schemes for large-volume clean energy projects and their placement with investors.

"Considering the large investment volume required for a 20 MWp large-scale power plant, guaranteeing the sale was essential for Sunowe. Our proven expertise allowed us to convince the seller that our proposed approach was right, namely combining the sale with the financing arrangement provided by the seller,” says Kai Hartmann, Head of Corporate Finance and Project Finance at youmex AG.

youmex was given the exclusive mandate for both tasks in February. For the implementation of the mandate, it was essential to get investors and banks interested in the project, who can handle this volume and have the corresponding resources. Considering the present situation in the capital market, this not only applies to the investor's own resources, but also to the refinancing options of the bank with regard to the high financing volume, in particular since a lengthy syndicated financing with several banks was to be avoided.

Within only four weeks, youmex' specialists succeeded in addressing and selecting an institutional high-performance investor and were able to involve a renowned bank specialised in project financing - both based in Germany - for the final sale and financing process.
 
The transaction process - signing the sales contract and the respective structured loan agreement up to the final closing of both contracts -  represented a particular challenge for youmex, as not only the representatives of the seller, investor and banks had to be involved in the process, but also their respective advisors.
 
"Establishing the buyer’s and bank’s conditions precedent took the longest, which is, however, not unusual in such complex large-volume transactions. All the more we are pleased about the successfully completed transaction and the fact that not only Sunowe, but also the investor and the financing bank are very satisfied with the transaction and the solar power plant", says Christian v. Olnhausen, Director Structured Finance & Clean Energy of youmex AG.
 
About Sunowe Solar:
Sunowe Solar GmbH is a wholly owned subsidiary of the Chinese Zhejiang Sunflower Light Energy Science & Technology Limited Liability Company (www.sunowe.com) – the manufacturer of the powerful Sunowe photovoltaic modules and cells. In 2011, the production capacity of the Sunowe Group regarding cells and modules amounted to 400 MW. Zhejiang Sunflower Light Energy Science & Technology Limited Liability Company went public successfully on the ChiNext Board in Shenzhen (CN) and is listed under stock number 300111. With its subsidiary, the Sunowe Group wants to expand its presence in the German Market and Europe and provide a direct contact for its clients on all matters of Chinese quality modules.

About youmex:
youmex group, Frankfurt am Main, combines complementary specialised institutes for tailor-made all-in-one financing solutions with transaction volumes of EUR 10 to EUR 250 million. As a financing platform, youmex as a one stop shop has been simplifying, accelerating and optimising transactions financing and capital market transactions for more than 10 years. The Project Finance area focuses on the Real Estate and Clean Energy asset classes. In particular, youmex arranges bridge, short-term and long-term financing of wind and solar parks for project developers and investors throughout Europe. By accessing more than 400 investors, youmex also markets and places wind and solar power plants – directly or in the form of investments in project companies or by take-overs. In the Capital Markets area, youmex AG, a German Stock Exchange Listing Partner, and its partner network accompany all steps required for raising capital. Securities are placed by youmex Invest AG, a financial services institute approved by the German Federal Financial Supervisory Authority (BaFin) and now one of leaders for small and mid cap bonds.