The renewable energy company Solgreen, which is controlled by Generation Capital, updated today (Tuesday) on a framework agreement in the amount of approximately 139 million euros (with an interest margin of 2.3% above the half-yearly Euribor) with a consortium of leading European banks for the refinancing of assets yields that the company has acquired and is expected to acquire in Italy. The banks included in the consortium are UniCredit, ING, and Societe Generale.
Of the total scope, the banks will provide approximately 66 million euros for the initial backlog of projects of approximately 26 megawatts and approximately 61 million euros will be provided for the refinancing of additional income-generating assets that the company has acquired and will acquire in Italy in the coming year. In addition to this, a credit limit of approximately 12 million euros will be established for the benefit of a debt service fund, as needed.
As part of the first financing of approximately 66 million Euros, Solgreen will withdraw equity capital invested to the extent of approximately 27.5 million Euros[itwillbeclarifiedthatthesaidequitywithdrawaldoesnotincludeequityattributabletogeneratingassetswithatotalinstalledcapacityofapproximately2megawattsfromthefirstbacklogwhichEquitywithdrawalinrelationtotheseassetsisexpectedtobedoneaspartofaseparatewithdrawalwhichwillmakeitpossibletocontinueandexpandthecompany’sactivities[יובהרכימשיכתההוןהעצמיהאמוראינהכוללתהוןעצמיהמיוחסלנכסיםמניביםבהספקמותקןכוללשלכ-2מגהוואטמתוךהצברהראשוןאשרמשיכתהוןעצמיביחסלנכסיםאלהצפויהלהיעשותבמסגרתמשיכהנפרדתמהשיאפשרלהמשיךולהרחיבאתהפעילותשלהחברה
Solgreen updates that the projects whose purchase has been completed as of this date in the amount of 32.5 megawatts were established by virtue of the Conto Energia arrangements and benefit from extremely high rates (a weighted rate of approximately 265 euros per megawatt hour) which are in addition to the income to which these properties are entitled for the sale of the electricity produced in them. The high rates together with the attractive financing are expected to generate for Solgreen a stable and strong flow of approximately 5.5 million euros in the representative year and reflect high returns on capital in the range of approximately 13%-15%.
The refinancing agreement is an important pillar in the realization of Solgreen’s work plan in Italy, and also illustrates the company’s abilities to operate in this country in an optimal way and to deepen and accelerate its activities in the coming years as well.
Eldad Persher, chairman of Solgreen: “This significant financing agreement illustrates Solgreen’s abilities to improve and expand its operations in Italy, while expressing confidence from leading European banks in a period characterized by significant financing challenges. After the refinancing agreement, our portfolio of yielding assets in Italy is expected to generate a high return on capital of up to 15%, while at the same time we are expected to withdraw a significant amount of approximately 27.5 million euros in the first stage, which will support the further deepening of our activities.”