Ellomay Capital Ltd. a renewable energy and power project developer in Europe, Israel, and the USA, announced the financial closing of a project finance facility for its Ellomay Solar PV plant and the completion of the sale of its Talmei Yosef PV plant.
Ellomay Solar PV Plant Financing
In a strategic move aimed at bolstering its renewable energy initiatives, the company’s subsidiary, Ellomay Solar, S.L., concluded a project finance arrangement for its 28 MW PV plant in Talaván, Cáceres, Spain. This arrangement, termed the “Project Finance,” encompasses a senior term loan of €10 million and a revolving facility of €500,000, both provided by Bankinter, S.A. The term spans 16 years with semi-annual repayments and includes a cash sweep mechanism expected to shorten the term to approximately 13 years. Notably, the finance carries an annual interest of Euribor 6-month plus 2.5%, mitigated by a swap agreement to a fixed rate of approximately 5.5% until June 30, 2037.
The agreement mandates prepayment under specific circumstances and enforces customary collaterals and covenants, ensuring financial stability. Following the financial closure, Ellomay Solar disbursed €9.7 million to Ellomay Luxembourg Holdings S.àr.l, the parent company.
Sale of the Talmei Yosef PV Plant
Moreover, the company successfully concluded the sale of its interest in the 9 MW Talmei Yosef PV Plant in Israel to Greenlight Fund Limited Partnership and Doral Group Renewable Energy Resources Ltd. The deal, initially announced earlier, materialized on June 2, 2024, with a net consideration of approximately NIS 42.6 million (approximately €10.6 million).
CEO’s Remark
Reflecting on these developments, Ran Fridrich, CEO and Board member of Ellomay, emphasized, “The financial closing of the Ellomay Solar project in Spain and the closing of the sale of the Talmei Yosef project increase the Company’s cash reserves, which will be used for the acceleration of construction of PV projects in the USA and Italy. The Company continues its policy of selling mature operating assets and obtaining project finance for projects that were self-funded after their connection to the grid. The Company is currently constructing approximately 50 MW PV in Texas, USA and approximately 40 MW PV in the Lazio Region, Italy without outside financing.”
These strategic moves underscore Ellomay’s commitment to sustainable energy and financial prudence in its operational endeavors.
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