Financial close for 300 MW solar project in Spain

Ellomay Capital Ltd., a renewable energy and power generator and developer of renewable energy and power projects in Europe and Israel, has announced the financial closing of the project finance obtained for the construction of a photovoltaic plant with a peak capacity of 300MW in the municipality of Talaván, in Extramadura, Spain (the Talasol Project) and the closing of the sale of 49% of its indirect holdings in the project company, Talasol Solar, S.L.U. (Talasol).

Following the consummation of these transactions, Talasol provided the engineering, procurement and construction contractor of the Talasol Project, METKA EGN Limited, a notice to proceed with the construction works of the Talasol Project. The construction period is expected to be 16 months.

The solar park consists of 400-kV step-up substation and line connecting the plant to the grid. It generates approximately 490-565 GWh per annum.

Ellomay has obtained a long-term loan in an aggregate amount of about EUR131 million (US$ 147 million) from Rabobank, ABN AMRO and Deutsche Bank, as well as the European Investment Bank (EIB) while closing a 49% interest sale in the project to a Capital Dynamics vehicle and Fond-ICO Infraestructuras II, FICC.

The project has a total cost of about EUR228 million (US$264.42 million) that includes an equity investment of EUR97 million (US$108.19 million) from Ellomay and the two new shareholders - GSE 3 UK Limited and FICC. 

Ran Fridrich, CEO and a board member of Ellomay, commented: "The Company is proud of the many accomplishments achieved thus far in the entrepreneurial process of the Talasol Project, which include a first-in-kind PPA that enabled obtaining project finance in extraordinary interest terms, and of the process of introducing quality partners to the project in a high premium."

Watson Farley & Williams advised project company Talasol Solar and developer Ellomay Capital on the complex project financing.