Ellomay Capital Announces Execution of Project Finance Agreements for its 198 MW Solar Portfolio in Italy

Rhea-AI Summary

Ellomay Capital (NYSE American; TASE: ELLO) has secured project financing agreements for its 198 MW Italian Solar Portfolio through its subsidiary Ellomay Holdings Luxembourg Sarl. The portfolio consists of 38 MW of operational solar facilities and 160 MW of ready-to-build projects.

The financing package, provided by a European institutional investor, amounts to €110 million and will be issued as senior secured notes in multiple tranches during the construction phase. The notes, maturing on December 31, 2047, carry a 4.50% annual interest rate with semi-annual payments. Financial closing is expected in the coming weeks.

Positive

• Secured €110 million project financing for 198 MW solar portfolio
• 38 MW of solar facilities already operational and grid-connected
• 160 MW of projects have achieved ready-to-build status
• Long-term financing secured until 2047

Negative

• 4.50% annual interest rate adds significant financing costs

Tel-Aviv, Israel, March 02, 2025 (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 owns a portfolio of 198 MW solar facilities in Italy, among other assets, that includes operating and “ready to build” projects (the “Italian Solar Portfolio”), entered into a set of agreements governing the procurement of financing (the “Project Finance”) with a reputable European institutional investor (the “Lender”), intended to finance the construction and related expenses of the Italian Solar Portfolio. The Italian Solar Portfolio includes three solar facilities, in the aggregate capacity of approximately 38 MW, which are already constructed and connected to the grid, and additional projects with an aggregate capacity of approximately 160 MW that have reached ready-to-build status.

The Project Finance in an amount of up to €110 million 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 to be repaid in semi-annual installments. The notes bear interest from and including the issue date to and excluding the maturity date at the rate of 4.50% per annum, to be paid semi-annually in arrears.

The financial closing of the Project Finance is expected to occur in the coming weeks.

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 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 solar power plants in Spain (including a 300 MW solar plant in owned by Talasol, which is 51% owned by the Company) and approximately 38 MW of operating solar 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 about 6%-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;
• Solar projects in Italy with an aggregate capacity of 285 MW that have reached “ready to build” status; and
• Solar projects in the Dallas Metropolitan area, Texas, USA with an aggregate capacity of 49 MW that are under construction.

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 non-fulfillment of any of the conditions to closing set forth in the Project Finance documentation, changes in electricity prices and demand, regulatory changes, 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 the war and hostilities in Israel and Gaza, 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: hilai@ellomay.com

FAQ

What is the total capacity of Ellomay Capital's (ELLO) Italian Solar Portfolio?

Ellomay Capital's Italian Solar Portfolio has a total capacity of 198 MW, comprising 38 MW of operational facilities and 160 MW of ready-to-build projects.

How much project financing did ELLO secure for its Italian solar projects?

ELLO secured €110 million in project financing through senior secured notes for its Italian Solar Portfolio.

What is the interest rate and maturity date for ELLO's solar project financing?

The financing carries a 4.50% annual interest rate with semi-annual payments and matures on December 31, 2047.

How many operational solar facilities does ELLO have in its Italian portfolio?

ELLO has three operational solar facilities with a combined capacity of 38 MW in its Italian portfolio.

When is the financial closing expected for ELLO's Italian solar project financing?

The financial closing of the project financing is expected to occur in the coming weeks from March 2, 2025.