S&P: Vela Energy bonds BBB

S&P said it assigned a BBB long-term issue credit ratings to the €310.4 million class A1 bond, €66.0 million class A2 bond and €28.0 million class A3 bond issued by Vela Energy Finance SA.

The total amount is €404.4 million.

The notes have a coupon of 3.195%, rank pari passu to other debt and are due in June 2036, S&P said.

The outlook is stable.

Vela Energy Finance will on-lend the proceeds of the bonds to Vela Energy Equityco SL under an on-loan agreement.

The proceeds will then be on-lent by Vela Energy Equityco SL to the 35 special-purpose vehicles that own the solar photovoltaic parks, S&P explained.

The project companies will use the proceeds to refinance bank financing and make an initial distribution to the direct and indirect shareholders, among other purposes, the agency said.

The rating reflects the project's operations phase stand-alone credit profile, supportive regulatory framework under which about 80% to 85% of total revenues are not exposed to electricity price fluctuation, solid track record of the technology deployed and low market risk, S&P said.

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