TEL AVIV, Israel, June 22, 2018 /PRNewswire/ --
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 and Israel, today announced that its wholly owned
Spanish subsidiary, Talasol Solar S.L. ("Talasol"), executed
a financial power swap in respect of approximately 80% of the
output of a prospective photovoltaic plant with a peak capacity of
approximately 300 MW in the municipality of Talaván, Cáceres,
Spain (the "Talasol
Project") for a period of 10 years (the "PPA"). The PPA
was executed with a leading international energy company with a
solid investment grade credit rating and a pan-European asset base,
which is active in more than 40 countries and has a proven track
record in financial hedges.
The power produced by the Talasol Project is expected to be sold
by Talasol in the open market for the then current market power
price and the PPA hedges the risks associated with fluctuating
electricity market prices by allowing Talasol to secure a stable
income for the power production included under the PPA. The PPA is
based on industry standard documentation published by the
International Swaps and Derivatives Association (ISDA), more
commonly used to hedge financial interest rate or currency risks,
and has been tailored to the Talasol Project. The PPA is structured
as a hedge of Talasol Project's capture price rather than base load
price, thus providing an optimal hedge for the Talasol Project's
revenues.
Based on current technical analysis of the design provided by
the EPC contractor of the Talasol Project, the P50 expected
production of the Talasol Project is approximately 545 GWh per
annum. Talasol is expecting that the Talasol Project's CAPEX will
amount to approximately euro 200-230
million, including development costs of approximately euro 20 million and interest of approximately
euro 7 million. Based on the current
technical analysis, a price projection analysis and the expected
hedging effect of the PPA, the Talasol Project's revenues are
currently expected to be in the range of euro 20-25 million per annum. The expected
operation expenses are euro 6 million
per annum, thus the net operation income, revenues net of operation
expenses, is expected to be euro
14-19 million per annum.
The Talasol Project is expected to be financed by a consortium
led by Deutsche Bank, which is the mandated lead arranger, and the
European Investment Bank (EIB). The expected leverage level is in
the range of 50-60% of the total investment. Financial closing is
expected before the end of 2018 and commencement of operations is
expected in the first half of 2020.
The continued development of the Talasol Project is subject
to risks and uncertainties, including with respect to the
occurrence of the conditions subsequent set forth in the Talasol
share purchase agreement, and other conditions that are not
entirely within the control of the Company or Talasol, as they
include the issuance of regulatory approvals and the procurement of
project financing on terms acceptable to Talasol. The projected
timing, production, revenues and other future results
and expenses included herein are based on the current
expectations and assumptions of the Company and its advisors and
are subject to various conditions and circumstances, including the
negotiations and final terms of the financing agreement,
O&M contract and several other agreements, some of which
have not yet been negotiated, finalized and executed. Moreover, the
Company and Talasol may, in their sole
discretion, decide not to pursue the Talasol Project in the event
of changes in the market or other circumstances. For more
information concerning these and other risks see below under
"Information Relating to Forward-Looking Statements."
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 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
and Spain, including:
- Approximately 22.6MW of photovoltaic power plants in
Italy, approximately 7.9MW of
photovoltaic power plants in Spain
and a photovoltaic power plant of approximately 9 MW in
Israel;
- 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 850 MW, representing about 6%-8% of Israel's total current electricity
consumption;
- 75% of Chashgal Elyon Ltd., Agira Sheuva Electra, L.P. and
Ellomay Pumped Storage (2014) Ltd., all of which are involved in a
project to construct a 156 MW pumped storage hydro power plant in
the Manara Cliff, Israel;
- 51% of Groen Gas Goor B.V. and of Groen Gas Oude-Tonge B.V.,
project companies operating or developing anaerobic digestion
plants with a green gas production capacity of approximately 375
Nm3/h, in Goor, the Netherlands
and 475 Nm3/h, in Oude Tonge, the
Netherlands, respectively.
Ellomay Capital is controlled by Mr. Shlomo Nehama, Mr. Hemi
Raphael and Mr. Ran Fridrich. Mr. Nehama is one of
Israel's prominent businessmen and
the former Chairman of Israel's
leading bank, Bank Hapohalim, and Messrs. Raphael and Fridrich both
have vast experience in financial and industrial businesses. These
controlling shareholders, along with Ellomay's dedicated
professional management, accumulated extensive experience in
recognizing suitable business opportunities worldwide. Ellomay
believes the expertise of Ellomay's controlling shareholders and
management enables the Company to access the capital markets, as
well as assemble global institutional investors and other potential
partners. As a result, we believe Ellomay is capable of considering
significant and complex transactions, beyond its immediate
financial resources.
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
availability of financing for the Talasol Project on terms
acceptable to the Company, if any. 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 Weintraub
CFO
Tel: +972(3)797-1111
Email: limors@ellomay.com
SOURCE Ellomay Capital Ltd