Ellomay Solar Secures Financing for 28 MW Solar Project

Ellomay Solar, an Israeli-based renewable energy power generator and developer in Europe and Israel, 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. The project was connected to the grid in 2022.

The financing comprises two facilities: firstly, a senior term loan for an amount of €10 million (~$10.86 million) (the “Term Loan”) and a revolving facility for €500,000 (~$543,393) (the “DSRF”). The project finance is repayable in semi-annual installments (principal and interest) and includes a cash sweep mechanism that is expected to reduce the term of the project finance to approximately 13 years.

Besides the financial close, Ellomay Solar also announced the completion of the previously announced sale of its stakes in the 9 MW Talmei Yosef PV project in Talmei Yosef, Israel, to Greenlight Fund Limited Partnership and Doral Group Renewable Energy Resources in equal parts. The sale was completed on June 2, 2024, upon fulfillment of several conditions. A net consideration of around €10.6 million (~$11.52 million) was paid at closing.

Ran Fridrich, CEO and a Board member of Ellomay, commented, “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.”

According to Mercom’s Q1 2024 Solar Funding and M&A report, large-scale project funding announced in Q1 2024 came to $13 billion in 62 deals, a decrease of 24% QoQ compared to $17.1 billion in 60 deals in Q4 2023.

Sol Systems, a solar finance and development company, secured $85 million in debt financing from Macquarie Asset Management, a global asset manager for the construction and development of five utility-scale solar projects in Illinois and Ohio.