Israeli Firm Solara Secures $65 Million Loan for Chilean Wind Project

Israeli renewable energy company Solara is moving forward with its Calbuco wind power project in Chile, which will have a total capacity of approximately 47.2 megawatts, complemented by about 80 megawatt-hours of energy storage. The project company, Energy Intersol Calbuco SpA, registered in Chile and in which Solara holds a roughly 47.4% stake, has finalized a binding financing agreement amounting to approximately $65 million with DNB Bank, a leading global energy financier. This loan is part of a larger financing syndicate involving other international banks.

Solara previously signed a binding electricity sales agreement for the project in August 2025, covering a period of about 11 years. Construction of the Calbuco facility commenced in early 2026. The project is slated to connect to the power grid in 2027. Upon full operation, it is projected to generate average annual revenues of around 48 million shekels and earnings before interest, taxes, depreciation, and amortization (EBITDA) of approximately 37 million shekels, based on a 100% ownership.

The total construction cost for the project is estimated at around 270 million shekels. The financing agreement includes senior debt of up to $65 million for construction, along with a credit line of up to $6.3 million for guarantees and VAT payments. The loan is scheduled for repayment in full after five years, with interest based on SOFR plus a margin of about 2.3% for the first four years, increasing to approximately 2.55% thereafter. Principal and interest payments will be made semi-annually.

This development follows Solara's recent announcement last month regarding a binding agreement to acquire a solar portfolio in Poland. This Polish portfolio comprises approximately 268 megawatts and is valued at an expected 175 million euros. The acquisition is being executed through a Polish-registered company, with Solara holding a 51% stake and Clal Insurance holding the remaining 49%. The Polish solar projects are anticipated to generate revenues of about 27.6 million euros, EBITDA of roughly 18.4 million euros, and Funds From Operations (FFO) of approximately 15.7 million euros annually, assuming full operation of all projects.