The financing costs for both Construction Loan & Term Loan are determined by:

• Amount of cash equity contributed to the construction of the solar farm
• Creditworthiness of the borrower
• Experience of the borrower
• Financial feasibility and viability of the project
• Location
• Other

Interest is capitalised during the term of the construction loan and therefore no repayments are required during the construction period.

Loan repayments are made when the construction loan is paid out and the term loan commences.

Prudential Finance facilitates finance for solar farm projects typically ranging from 5 megawatts to 500 megawatts or more in generation capacity, with debt facilities scaled to project cost.

Funding can be considered at multiple stages including early-stage development, shovel-ready with approvals and grid connection, construction phase and operating assets requiring refinance.

Security typically includes a registered mortgage over the project land, a general security agreement over the project company, assignment of material project contracts and in some cases personal or corporate guarantees.

Lenders typically require a signed Power Purchase Agreement (PPA) or revenue offtake, an Engineering Procurement and Construction (EPC) contract, grid connection agreement, operations and maintenance (O&M) agreement and land tenure arrangements.

A PPA or equivalent offtake arrangement significantly improves financing terms, but merchant or partially merchant projects can also be funded with appropriate risk-adjusted pricing and structuring.

LVRs vary by stage and offtake structure. Construction finance for contracted projects is typically up to 70 percent of project cost. Development-stage finance is usually lower, supplemented by sponsor equity.

Rates depend on project stage, offtake contract strength, sponsor experience and structural features. Current pricing is quoted per application and ranges across bank-style institutional rates and private capital pricing.

Sponsors include independent power producers, project developers, infrastructure funds, utility companies and experienced renewable energy entrepreneurs with a track record of project delivery.

Yes. Battery energy storage systems (BESS) and hybrid solar-plus-storage projects are within scope, subject to offtake arrangements and grid connection clarity.

Indicative terms can typically be issued within two to four weeks of a complete submission, with formal financial close generally taking eight to sixteen weeks given the complexity of project documentation.