Ellomay Capital Announces Execution and Financial Closing of Project Finance for the Ellomay Solar Project and Consummation of Sale of the Talmei Yosef Project
Rhea-AI Summary
Ellomay Capital announced the financial closing of a project finance facility for its 28 MW Ellomay Solar PV plant in Talaván, Spain, and the sale of its 9 MW Talmei Yosef PV plant in Israel. The project finance arrangement includes a €10 million term loan and a €500,000 revolving facility from Bankinter, both with a 16-year term. The interest rate is fixed at approximately 5.5% annually. The term loan will be repaid in semi-annual installments, with the first due on December 31, 2024. Ellomay Solar withdrew €9.7 million to its parent company upon closing.
The sale of the Talmei Yosef plant was completed on June 2, 2024, for approximately €10.6 million. This increases Ellomay’s cash reserves, earmarked for PV projects in the USA and Italy.
Positive
- Financial closing of €10.5 million project finance for Ellomay Solar PV plant.
- Sale of Talmei Yosef PV plant for approximately €10.6 million, boosting cash reserves.
- Fixed annual interest rate for project finance at approximately 5.5%, providing cost predictability.
- Ellomay's strategy of selling mature assets and obtaining project finance for new projects aims to enhance financial flexibility.
- Increased cash reserves to fund new PV projects in the USA and Italy.
Negative
- The term loan and DSRF bear an annual interest rate of approximately 5.5%, which may be relatively high depending on market conditions.
- Mandatory prepayment clauses and various covenants could limit financial flexibility.
- Potential risks associated with relying on cash sweep mechanisms to reduce the term of the project finance.
News Market Reaction – ELLO
In the trading session that priced this news, ELLO declined 1.82%, reflecting a mild negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
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Project Finance for the Ellomay Solar PV Plant
The Company's indirectly wholly-owned subsidiary, Ellomay Solar, S.L. ("Ellomay Solar"), which owns a 28 MW PV plant in Talaván,
The Project Finance is comprised of two facilities: (i) a senior term loan for an amount of
The Term Loan and DSRF (to the extent withdrawn) bear an annual interest of Euribor 6-month plus
The Project Finance provides for mandatory prepayment upon the occurrence of certain customary events and includes various customary collaterals, representations, warranties and covenants, including covenants to maintain a DSCR not lower than 1.05:1, and not to make distributions unless, among other things: (i) the DSCR is at least 1.20:1.0, (ii) the first instalment of the Project Finance will be repaid on December 31, 2024, and (iii) no amount under the DSRF has been withdrawn and not fully repaid.
Upon financial closing Ellomay Solar withdrew the Term Loan and distributed
Sale of the Talmei Yosef PV Plant
As previously announced, the Company entered into an agreement to sell its holdings in the 9 MW PV plant located in Talmei Yosef,
Ran Fridrich, CEO and a Board member of Ellomay, commented, "The financial closing of the Ellomay Solar project in
About Ellomay Capital Ltd.
Ellomay is an Israeli based company whose shares are registered with the NYSE American and with 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
To date, Ellomay has evaluated numerous opportunities and invested significant funds in the renewable, clean energy and natural resources industries in
- Approximately 35.9 MW of photovoltaic power plants in
Spain and a photovoltaic power plant of 4.95 MW inItaly ; 9.375% indirect interest in Dorad Energy Ltd., which owns and operates one ofIsrael's largest private power plants with production capacity of approximately 850MW, representing about6% -8% ofIsrael's total current electricity consumption;51% of Talasol, which owns a photovoltaic plant with a peak capacity of 300MW in the municipality of Talaván,Cáceres, Spain ;- 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 One SRL that owns a photovoltaic plant with installed capacity of 14.8 MW in the
Lazio Region ,Italy that is ready for connection to the grid; - Ellomay Solar Italy Four SRL (15.06 MW PV), Ellomay Solar Italy Five SRL (87.2 MW PV), Ellomay Solar Italy Seven SRL (54.77 MW PV), Ellomay Solar Italy Nine SRL (8 MW PV) and Ellomay Solar Italy Ten SRL (18 MW PV) that are developing photovoltaic projects in
Italy that have reached "ready to build" status; and - Fairfield Solar Project, LLC (13.44 MW PV), Malakoff Solar I, LLC (6.96 MW PV) and Malakoff Solar II, LLC (6.96 MW PV), that are constructing photovoltaic plants and Mexia Solar I, LLC (5.6 MW PV), Mexia Solar II, LLC (5.6 MW PV), and Talco Solar, LLC (10.3 MW PV), 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 changes in electricity prices and demand, regulatory changes, the impact of the war and hostilities in
Contact:
Kalia Rubenbach (Weintraub)
CFO
Tel: +972 (3) 797-1111
Email: hilai@ellomay.com
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