AES Solar Energy Ltd (AES Solar), a joint venture between The AES Corporation and Riverstone Holdings LLC, announced that on December 30, 2008 one of its subsidiaries closed a euros 70 million non-recourse debt facility for five of its photovoltaic (PV) projects in Spain. The loan was extended by UniCredit Mediocredito Centrale of Italy and Rabobank of the Netherlands. The financing is at an initial margin of 255 bps to EURIBOR per annum and it is amortized based on an underlying tenor of 18 years.

Formed in March, 2008, AES Solar develops, owns and operates utility scale solar installations. The PV solar installations are part of AES Solar's eight operating power plants in Spain. The projects qualify for the favorable regulated tariff under the Spanish Special Regime for renewable projects (Royal Decree 661/2007).

"We are encouraged by our ability to close the financing in challenging credit markets. This accomplishment is largely the result of the intersection of good projects, good banks, and good people working hard on both sides of the deal," said Robert Hemphill, CEO of AES Solar.

"The transaction reflects UniCredit Group's resolute commitment to AES Solar and to the renewable energy sector, which remains undeterred in spite of challenging market conditions," said Massimo Pecorari, Head of Project and Commodity Finance Southern Europe.

Marcel Gerritsen, Global Head Renewable Energy and Infrastructure Finance of Rabobank expressed, "We are very happy to have been able to work with AES Solar to produce an innovative financing solution for this solar portfolio, matching both the innovative technology used and the challenging conditions we all face."

First Solar's thin film panels are used in three of the five projects. This financing represents the largest project financing completed in Spain for solar installations utilizing First Solar panels.