Ellomay Capital, a renewable energy project developer in Europe, the U.S., and Israel, announced that its wholly owned subsidiary Ellomay Holdings Luxembourg Sarl entered into a project financing agreement amounting up to €110 million (~$114.11 million) for the construction of its 198 MW solar project portfolio in Italy.
The portfolio comprises three solar projects already connected to the grid with a combined capacity of 38 MW and additional projects totaling 160 MW that are in ready-to-build stages.
The company closed the agreement with an undisclosed European institutional investor, which will be provided by way of senior secured notes to be issued in multiple tranches during the construction phase by a wholly owned subsidiary of Ellomay Luxembourg.
All notes are due on December 31, 2047, and are to be repaid in semi-annual installments. The financial closing of the project financing is expected to occur in the coming weeks.
The notes bear interest from and include the issue date to and exclude the maturity date at the rate of 4.50% per annum, to be paid semi-annually in arrears.
According to Mercom’s Annual and Q4 2024 Solar Funding and M&A report, large-scale project funding in 2024 increased 21% year-over-year.
Last year, Ellomay Capital announced that it had executed an agreement to sell its holdings in the 9 MW Talmei Yosef Solar facility in Israel to Greenlight Fund Limited Partnership and Doral Group Renewable Energy Resources, in equal parts, in consideration for NIS44.75 million (~$12.2 million). In addition, the company also secured financing for the 28 MW Ellomay solar project in Talaván, Cáceres, Spain, from Bankinter, a Spanish financial services company, for a term of 16 years.
