Ellomay Increases Cash Reserves to Fund Multi-Country Solar Assets

Israeli renewables developer and power producer Ellomay Capital Ltd has closed a loan deal backing a 28MW solar plant in Spain and, at the same time, completed an asset sale that provides it with cash to build new solar parks in Italy and the US.

The Tel Aviv-based company said on Tuesday that its wholly-owned subsidiary Ellomay Solar SL, owner of the operational solar park in Talavan, Caceres, has closed a 16-year project finance arrangement with Bankinter SA for a senior term loan of EUR 10 million and a EUR-500,000 revolving credit line. Following a swap agreement, both facilities have a fixed annual interest rate of approximately 5.5%.

Meanwhile, Ellomay also said it has consummated the sale of a 9-MW solar park in Israel to Greenlight Fund Limited Partnership and Doral Group Renewable Energy Resources Ltd. The Talmei Yosef plant was offloaded for a net amount of NIS 42.6 million (USD 11.2m/EUR 10.6m).

"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," said CEO Ran Fridrich.

Ellomay is currently installing 50 MW of photovoltaic (PV) farms in Texas and an additional 40 MW in the Italian region of Lazio without outside financing, Fridrich noted further.