Econergy Renewable Energy, an independent power producer, has secured €200 million (~$227 million) for its Romanian and Polish solar projects through joint ventures with Phoenix Insurance and RGreen Invest.
Phoenix Insurance has provided a €150 million (~$170 million) loan (€110.25 million (~$125 million) as a convertible loan and €39.75 million (~$45 million) as a permanent loan for solar projects in Romania and Poland that are expected to start construction in 2022.
Phoenix said it would have the right to convert the convertible loan granted to the projects for 49% of the shareholders’ capital and owners’ loans of the project partnerships.
French asset manager RGreen provided €50 million (~$57 million) in equity and loan for a 90 MW Romanian solar project in Parau.
Econergy Renewable Energy said RGreen would also provide a solar project development cost of €9 million (~$10 million) and nearly €5 million (~$5.6 million) for construction work and management services for the project’s connection to the electricity grid for ten years.
Eyal Podhorzer, Econergy’s CEO, said: “We are pleased to be developing our strategic partnerships with both Phoenix Insurance and RGreen to support the development, construction, and maintenance of our Romanian and Polish renewable energy projects.
“Romania and Poland both represent key target markets for Econergy, and these joint ventures will support the timely and effective delivery of our projects in these countries.
“The agreements with Phoenix Insurance and RGreen are an expression of trust in Econergy’s business model and in our growth plans to develop clean energy infrastructure across Europe. We will continue to take action to expand and to progress the projects in our pipeline in the various markets we operate in as we look to play a leading role in the energy transition in Europe.”
According to Mercom’s recently published Q4 2021 solar funding and M&A report, announced large-scale project funding came to $18.7 billion in 185 deals in 2021 compared to $18 billion in 167 deals in 2020. Recently, Atlas Renewable Energy, a renewable energy company, secured a R$407 million (~$76 million) loan from Brazilian lender Banco do Nordeste do Brasil’s Northeastern Constitutional Financing Fund to construct – 239 MW Lar do Sol – Casablanca II solar project in Brazil.