Basel IV – What It Means for Solar Park Developers
From January 2025 in the EU (and 2026 in the UK), Basel IV rules will change how banks treat land and development loans. Banks will need to hold more capital against land exposures, making them more expensive and harder to access. This will directly affect how developers finance projects.
What Changes for Land and Development Loans
Higher Bank Capital Costs – Loans for land acquisition or early-stage development will carry much higher risk weights. Banks will pass this cost on to you—or step back entirely.
More Equity Required – Expect banks to demand higher equity contributions or presales before lending against land positions.
Stricter Valuations – Banks will be forced to use more conservative collateral valuations, limiting the leverage they can offer.
Longer Timelines – Compliance with new rules slows down credit approvals, delaying your ability to move projects forward.
The Financing Gap
This shift leaves a gap exactly where developers need capital most—securing land and pushing projects through to ready-to-build. Under Basel IV, banks will avoid this stage, or make financing prohibitively expensive
How Telios Helps
Telios is not bound by Basel IV capital rules. That means we can provide flexible, low-cost financing right where banks pull back:
Prepaying leases or acquiring land so you don’t tie up equity.
Unlocking upfront capital for EPC equity, guarantees, and pipeline growth.
Offering long-term, CPI-linked leases that are lender-friendly and bankable at project financing stage.
Fast execution — transactions in 1–2 months, based on lease valuation, not lengthy credit processes.
Bottom Line
Basel IV makes it harder and more expensive to get bank financing for land. Telios is designed to solve that problem—giving you access to upfront, flexible, and bankable capital so you can keep building.
