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Ellomay Capital (NYSE American; TASE: ELLO) has announced a significant milestone towards financing its 198 MW solar portfolio in Italy. The company’s subsidiary, Ellomay Holdings Luxembourg Sarl, has entered into a commitment letter with a reputable European institutional investor for a Project Finance of up to €110 million.
The financing, subject to conditions, will be provided as a non-recourse merchant loan through senior secured notes, with a 23-year repayment term following financial closing. This Project Finance aims to fund the construction and related expenses of the Italian PV Portfolio, which includes operating, under-construction, and ready-to-build projects.
The commitment is contingent on executing detailed Project Finance documentation by December 31, 2024, and satisfactory completion of due diligence by the lender. Ellomay Capital cautions that the final execution and terms of the financing are not guaranteed.
Ellomay Capital (NYSE American; TASE: ELLO) ha annunciato un traguardo significativo nel finanziamento del suo portfolio solare da 198 MW in Italia. La controllata della società, Ellomay Holdings Luxembourg Sarl, ha firmato una lettera di impegno con un rinomato investitore istituzionale europeo per un finanziamento del progetto fino a 110 milioni di euro.
Il finanziamento, soggetto a condizioni, sarà fornito come un prestito commerciale senza ricorso tramite note garantite senior, con un termine di rimborso di 23 anni dopo la chiusura finanziaria. Questo finanziamento mira a coprire i costi di costruzione e le spese correlate del Portfolio PV italiano, che comprende progetti operativi, in costruzione e pronti per la realizzazione.
L’impegno è subordinato all’esecuzione della documentazione dettagliata del finanziamento del progetto entro il 31 dicembre 2024 e al completamento soddisfacente della due diligence da parte del prestatore. Ellomay Capital avverte che l’esecuzione finale e i termini del finanziamento non sono garantiti.
Ellomay Capital (NYSE American; TASE: ELLO) ha anunciado un hito significativo hacia el financiamiento de su portafolio solar de 198 MW en Italia. La subsidiaria de la compañía, Ellomay Holdings Luxembourg Sarl, ha firmado una carta de compromiso con un inversor institucional europeo de renombre por un financiamiento de proyecto de hasta 110 millones de euros.
El financiamiento, sujeto a condiciones, se proporcionará como un préstamo comercial sin recurso a través de bonos garantizados senior, con un plazo de reembolso de 23 años tras el cierre financiero. Este financiamiento de proyecto tiene como objetivo cubrir la construcción y los gastos relacionados del Portafolio PV italiano, que incluye proyectos operativos, en construcción y listos para ser construidos.
El compromiso está sujeto a la ejecución de la documentación detallada del financiamiento del proyecto antes del 31 de diciembre de 2024, y la finalización satisfactoria de la debida diligencia por parte del prestamista. Ellomay Capital advierte que la ejecución final y los términos del financiamiento no están garantizados.
Ellomay Capital (NYSE American; TASE: ELLO)는 이탈리아에 있는 198 MW 규모의 태양광 포트폴리오 자금을 확보하는 데 있어 중대한 이정표를 발표했습니다. 회사의 자회사인 Ellomay Holdings Luxembourg Sarl은 유럽의 명성 있는 기관 투자자와 최대 1억 1000만 유로의 프로젝트 금융에 대한 약정서를 체결했습니다.
자금은 조건에 따라 제공되며, 비상환 상업 대출 형태로 제공되며, 재무 마감 후 23년의 상환 기간을 가집니다. 이 프로젝트 금융은 이탈리아 PV 포트폴리오의 건설 및 관련 비용을 지원하는 것을 목표로 하며, 운영 중인 프로젝트, 건설 중인 프로젝트 및 건설 준비가 완료된 프로젝트를 포함합니다.
이 약정은 2024년 12월 31일까지의 상세한 프로젝트 금융 문서의 실행 및 대출 기관의 만족스러운 실사를 완료하는 것을 조건으로 합니다. Ellomay Capital은 최종 실행 및 금융 조건이 보장되지 않음을 경고합니다.
Ellomay Capital (NYSE American; TASE: ELLO) a annoncé une étape importante dans le financement de son portefeuille solaire de 198 MW en Italie. La filiale de la société, Ellomay Holdings Luxembourg Sarl, a signé une lettre d’engagement avec un investisseur institutionnel européen de renom pour un financement de projet allant jusqu’à 110 millions d’euros.
Ce financement, soumis à des conditions, sera fourni sous la forme d’un prêt commercial sans recours par le biais de billets garantis senior, avec un délai de remboursement de 23 ans après la clôture financière. Ce financement de projet vise à couvrir les coûts de construction et les dépenses associées du portefeuille PV italien, qui comprend des projets en exploitation, en construction et prêts à être construits.
L’engagement est conditionné à l’exécution de la documentation détaillée du financement de projet d’ici le 31 décembre 2024 et à l’achèvement satisfaisant de la diligence raisonnable par le prêteur. Ellomay Capital avertit que l’exécution finale et les conditions de financement ne sont pas garanties.
Ellomay Capital (NYSE American; TASE: ELLO) hat einen bedeutenden Meilenstein hinsichtlich der Finanzierung seines 198 MW Solarportfolios in Italien bekannt gegeben. Die Tochtergesellschaft des Unternehmens, Ellomay Holdings Luxembourg Sarl, hat einen Verpflichtungsbrief mit einem renommierten europäischen institutionellen Investor über eine Projektfinanzierung von bis zu 110 Millionen Euro unterzeichnet.
Die Finanzierung, die an Bedingungen gebunden ist, wird als nicht rückzahlbarer Kaufkredit über senior gesicherte Anleihen bereitgestellt, mit einer Rückzahlungsfrist von 23 Jahren nach dem finanziellen Abschluss. Diese Projektfinanzierung zielt darauf ab, die Baukosten und damit verbundene Ausgaben des italienischen PV-Portfolios zu finanzieren, das betriebene, im Bau befindliche und baureife Projekte umfasst.
Die Verpflichtung ist abhängig von der Ausführung detaillierter Projektfinanzierungsdokumente bis zum 31. Dezember 2024 und dem zufriedenstellenden Abschluss der Due Diligence durch den Kreditgeber. Ellomay Capital warnt, dass die endgültige Ausführung und die Bedingungen der Finanzierung nicht garantiert sind.
Positive
- Secured commitment for up to €110 million in Project Finance
- Non-recourse merchant loan structure
- Long-term financing with 23-year repayment period
- Potential to finance or refinance 198 MW solar portfolio in Italy
Negative
- Financing not guaranteed; subject to due diligence and documentation
- Deadline of December 31, 2024, for finalizing documentation
The announcement of a €110 million potential project finance for Ellomay’s 198 MW Italian solar portfolio is a significant development. This non-recourse merchant loan could provide substantial financial flexibility, potentially accelerating the company’s growth in the Italian renewable energy market. The 23-year repayment term aligns well with the long-term nature of solar projects, potentially enhancing project economics. However, investors should note that this is not a done deal – the December 31, 2024 deadline for documentation and due diligence completion introduces some uncertainty. The non-recourse nature of the loan is a positive, as it limits Ellomay’s overall risk exposure. Overall, this development could significantly boost Ellomay’s capacity to execute its Italian solar strategy, but prudent investors will wait for the final terms and successful closing before fully factoring this into their valuation models.
Ellomay’s move to secure financing for its 198 MW Italian solar portfolio is strategically sound. Italy’s solar market is experiencing rapid growth, driven by favorable policies and declining technology costs. The portfolio’s mix of operating, under-construction and ready-to-build projects suggests a well-structured approach to market entry. The merchant nature of the loan is particularly interesting, as it implies confidence in future electricity prices and potentially higher returns compared to fixed-price power purchase agreements. However, it also introduces more market risk. The €110 million financing, if secured, would provide substantial capital for project completion, potentially accelerating Ellomay’s market position in Italy. This move aligns with broader trends of institutional investors seeking exposure to renewable energy assets, highlighting the sector’s maturation and attractiveness.
Tel-Aviv, Israel, Sept. 09, 2024 (GLOBE NEWSWIRE) — Ellomay Capital Ltd. (NYSE American; TASE: ELLO) (“Ellomay” or the “Company”), a renewable energy and power generator and developer of renewable energy and power projects in Europe, Israel and the USA, today reported that its wholly-owned subsidiary, Ellomay Holdings Luxembourg Sarl (“Ellomay Luxembourg”), which among other assets owns a portfolio of 198 MW solar in Italy that includes operating, under construction and “ready to build” projects (the “Italian PV Portfolio”), achieved an important milestone towards the financing of the Italian PV Portfolio (the “Project Finance”) through the entrance of commitment letter and term sheet (the “Commitment Letter”) between Ellomay Luxembourg and a reputable European institutional investor (the “Lender”).
The Commitment Letter sets forth the terms and conditions of the Project Finance, in an amount of up to
The Lender’s commitments are subject to the execution of detailed Project Finance documentation by no later than December 31, 2024 (or such later date as agreed by the parties) and the satisfactory completion of due diligence by the Lender. Therefore, we cannot assure you that the financing contemplated by the Commitment Letter will be executed or consummated and, to the extent executed and consummated, what the final terms of such financing will be.
About Ellomay Capital Ltd.
Ellomay is an Israeli based company whose shares are listed on the NYSE American and the Tel Aviv Stock Exchange under the trading symbol “ELLO”. Since 2009, Ellomay Capital focuses its business in the renewable energy and power sectors in Europe, USA and Israel.
To date, Ellomay has evaluated numerous opportunities and invested significant funds in the renewable, clean energy and natural resources industries in Israel, Italy, Spain, the Netherlands and Texas, USA, including:
- Approximately 335.9 MW of operating photovoltaic power plants in Spain (including a 300 MW photovoltaic plant in owned by Talasol, which is
51% owned by the Company) and approximately 20 MW of operating photovoltaic power plants in Italy; 9.375% indirect interest in Dorad Energy Ltd., which owns and operates one of Israel’s largest private power plants with production capacity of approximately 850MW, representing about6% –8% of Israel’s total current electricity consumption;- Groen Gas Goor B.V., Groen Gas Oude-Tonge B.V. and Groen Gas Gelderland B.V., project companies operating anaerobic digestion plants in the Netherlands, with a green gas production capacity of approximately 3 million, 3.8 million and 9.5 million Nm3 per year, respectively;
83.333% of Ellomay Pumped Storage (2014) Ltd., which is involved in a project to construct a 156 MW pumped storage hydro power plant in the Manara Cliff, Israel;- Ellomay Solar Italy Ten SRL that is construction a photovoltaic plant (18 MW) in Italy;
- Ellomay Solar Italy Four SRL (15.06 MW), Ellomay Solar Italy Five SRL (87.2 MW), Ellomay Solar Italy Seven SRL (54.77 MW), Ellomay Solar Italy Nine SRL (8 MW) and Ellomay Solar Italy Fifteen SRL (10 MW) that are developing photovoltaic projects in Italy that have reached “ready to build” status; and
- Fairfield Solar Project, LLC (13.44 MW), Malakoff Solar I, LLC (6.96 MW) and Malakoff Solar II, LLC (6.96 MW), that are constructing photovoltaic plants and Mexia Solar I, LLC (5.6 MW), Mexia Solar II, LLC (5.6 MW), and Talco Solar, LLC (10.3 MW), that are developing photovoltaic projects that have reached “ready to build” status, all in the Dallas Metropolitan area, Texas.
For more information about Ellomay, visit http://www.ellomay.com.
Information Relating to Forward-Looking Statements
This press release contains forward-looking statements that involve substantial risks and uncertainties, including statements that are based on the current expectations and assumptions of the Company’s management. All statements, other than statements of historical facts, included in this press release regarding the Company’s plans and objectives, expectations and assumptions of management are forward-looking statements. The use of certain words, including the words “estimate,” “project,” “intend,” “expect,” “believe” and similar expressions are intended to identify forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The Company may not actually achieve the plans, intentions or expectations disclosed in the forward-looking statements and you should not place undue reliance on the Company’s forward-looking statements. Various important factors could cause actual results or events to differ materially from those that may be expressed or implied by the Company’s forward-looking statements, including the inability to agree on detailed Project Finance documentation with the Lender, due diligence findings that are not satisfactory to the Lender, changes in the markets and economy, changes in electricity prices and demand, continued war and hostilities in Israel and Gaza, regulatory changes, including extension of current or approval of new rules and regulations increasing the operating expenses of manufacturers of renewable energy in Spain, increases in interest rates and inflation, changes in the supply and prices of resources required for the operation of the Company’s facilities (such as waste and natural gas) and in the price of oil, the impact of continued military conflict between Russia and Ukraine, technical and other disruptions in the operations or construction of the power plants owned by the Company and general market, political and economic conditions in the countries in which the Company operates, including Israel, Spain, Italy and the United States. These and other risks and uncertainties associated with the Company’s business are described in greater detail in the filings the Company makes from time to time with Securities and Exchange Commission, including its Annual Report on Form 20-F. The forward-looking statements are made as of this date and the Company does not undertake any obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise.
Contact:
Kalia Rubenbach (Weintraub)
CFO
Tel: +972 (3) 797-1111
Email: [email protected]
FAQ
What is the size of Ellomay Capital’s solar portfolio in Italy?
Ellomay Capital’s solar portfolio in Italy comprises 198 MW, including operating, under-construction, and ready-to-build projects.
How much Project Finance has Ellomay Capital (ELLO) secured for its Italian solar portfolio?
Ellomay Capital has secured a commitment for up to €110 million in Project Finance for its Italian solar portfolio.
What is the repayment term for the Project Finance secured by Ellomay Capital (ELLO)?
The Project Finance secured by Ellomay Capital has a final repayment date of 23 years following financial closing.
When is the deadline for Ellomay Capital (ELLO) to finalize the Project Finance documentation?
The deadline for Ellomay Capital to finalize the Project Finance documentation is December 31, 2024, unless extended by agreement between the parties.