TerniEnergia signed the closing sale for 11 solar PV plant portfolio in Italy

TerniEnergia has completed the sale of 11 solar photovoltaic plants in Italy with a total installed capacity of 9.4 MW, to Mareccio Energia S.r.l., a platform for the aggregation of photovoltaic plants in Italy of a primary investment fund, in partnership with the sponsor LCF Alliance.

The 11 solar PV plants represent the first tranche of a larger portfolio of 22 solar parks with a combined capacity of 19.3 MW that TerniEnergia in June agreed to sell to Mareccio Energia.

The total price for the sale of the plants is equal to approximately EUR10.3 million (US$11.24 million), while the net collection for TerniEnergia will be equal to approximately EUR9.5 million (US$10.36 million), including a trade receivable from an SPV (net of the Escrow account and the minority interests in the JV). The sale was carried out as part of TerniEnergia's Recovery and Relaunch plan for 2018-2022, aimed at restoring the financial and equity balance of the company.

The deal includes the assumption of financial debt related to the power plants totaling EUR17.9 million (US$19.5 million). As agreed earlier, TerniEnergia will continue to operate and maintain the plants for a period of three years.

Mareccio Energia (“Mareccio”) is a platform that Basalt has established for the aggregation of small scale operational Italian solar parks. The Italian small scale solar market is highly fragmented and parks benefit from a long term fixed tariff. Mareccio has been established with the initial objective of acquiring assets with a capacity of 100MW and will, therefore, have the opportunity to deliver financial and operational enhancement to the portfolio through the increased scale of operations. Basalt has teamed up with LCF Alliance and Belectric as its operational partners to assist in delivery. Belectric is an existing operational partner from McEwan Power in the UK and a long-established operator in Italy.