The Energy & Environmental Finance team at Bank of Scotland Corporate has announced the completion of a deal worth €63m with Santander Investment for the construction and operation of an 8MW solar farm (Madridejos) in Toledo, South Spain, where BP Solar is in charge of the engineering, procurement and construction (EPC) of the solar power plant as well as its operation and maintenance.

The solar photovoltaic (PV) project, which is situated in one of the highest areas of solar irradiation in Spain, is being built under a framework agreement between Santander Investment S.A., the equity arm of Grupo Santander, and BP Solar, which has already seen them construct eleven projects to date.

Bank of Scotland is acting as sole mandated lead arranger on the transaction. BP Solar will be in charge of the operation and maintenance of the park guaranteeing a minimum energy production. Construction of the park started in mid-February and is scheduled to be completed by the end of August 2008.

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With over 40 years of experience and installations in over 160 countries, BP Solar is one of the world's largest solar companies, with manufacturing facilities in the United States, Spain, India, Australia and China. BP Solar produces more than 200 MW of solar technology every year. BP Solar is the Spanish branch of BP Solar Global. The company's manufacturing facilities are located in Tres Cantos (solar cells) and Sans Sebastian de los Reyes (solar modules) for a total Solar PV production capacity of 300MW.

The deal is the fifth PV solar energy financing facility to be completed by Bank of Scotland Corporate's Energy & Environmental Finance team this year.

Solar generation is now the fastest growing electricity source worldwide doubling its output every two years.

Commenting upon the deal, Ed Wilson, Head of Energy & Environmental Finance at Bank of Scotland Corporate said: "We are delighted to be undertaking a senior role in a solar renewable financing in Spain with a first class player in BP Solar. Having completed five PV deals over the past six months, Bank of Scotland is now well placed to take advantage of the increasing number of renewable financing opportunities within the European solar market.

"Our experience in renewable financing, aligned to our partner approach to such financing, will hopefully enable us to further consolidate our leading position as financier of choice within this market."

(GK/JM)