TEL-AVIV, Israel, June 4, 2024
/PRNewswire/ -- Ellomay Capital Ltd. (NYSE American: ELLO)
(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 the execution and
financial closing of a project finance facility for the Ellomay
Solar PV plant and the consummation of the sale of the Talmei Yosef
PV plant.
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,
Cáceres, Spain that was connected
to the grid in June 2022, entered
into and reached financial closing of a project finance arrangement
(the "Project Finance") with Bankinter, S.A.
The Project Finance is comprised of two facilities: (i) a senior
term loan for an amount of €10 million (the "Term Loan"); and (ii)
a revolving facility for an amount of €500,000 (the "DSRF"). The
Project Finance is for a term of 16 years and is repayable in
semi-annual installments (principal and interest). The Project
Finance includes a cash sweep mechanism that is expected to reduce
the term of the Project Finance to approximately 13 years.
The Term Loan and DSRF (to the extent withdrawn) bear an annual
interest of Euribor 6-month plus 2.5%. Ellomay Solar entered into
swap agreement with respect to the amount of the Project Finance
until June 30, 2037, replacing the
Euribor 6-month rate with a fixed 6-month rate of approximately 3%,
resulting in a fixed annual interest rate of approximately
5.5%.
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2024, and (iii) no amount under the DSRF has been withdrawn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 €9.7 million to Ellomay Luxembourg Holdings S.àr.l, the
Company's wholly-owned subsidiary and Ellomay Solar's parent
company.
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,
Israel (the "Talmei Yosef PV
Plant") to Greenlight Fund Limited Partnership and Doral Group
Renewable Energy Resources Ltd., in equal parts. The consummation
of the agreement was subject to several conditions to closing.
Following fulfillment of such conditions, the sale was consummated
on June 2, 2024. The net
consideration paid at closing was approximately NIS 42.6 million (approximately €10.6 million).
Ran Fridrich, CEO and a Board member of Ellomay, commented, "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. The Company continues its policy of
selling mature operating assets and obtaining project finance for
projects that were self-funded after their connection to the grid.
The Company is currently constructing approximately 50 MW PV in
Texas, USA and approximately 40 MW
PV in the Lazio Region, Italy
without outside financing."
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 35.9 MW of photovoltaic power plants in
Spain and a photovoltaic power
plant of 4.95 MW 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;
- 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 Israel
and Gaza, 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
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, in addition
to other risks and uncertainties associated with the Company's
business that 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
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SOURCE Ellomay Capital Ltd.