Ellomay Secures €110M for Italian Solar Expansion

• Ellomay Capital secures €110M to power up its Italian solar projects, boosting 198 MW of green energy with strategic European investment.

Ellomay Capital Ltd, an Israeli renewables developer, has secured project financing of up to EUR 110 million to bolster its Italian solar portfolio, which includes 198 MW of operational and ready-to-build projects. The financing arrangement involves Ellomay Holdings Luxembourg Sarl, a unit of the company, entering agreements with an unnamed European institutional investor. This funding will support the construction and related expenses of the portfolio, comprising 38 MW of operational plants and approximately 160 MW of ready-to-build projects.

The financing will be structured as senior secured notes issued in multiple tranches during the construction phase by a wholly-owned subsidiary of Ellomay Luxembourg. The financial closing is anticipated in the coming weeks. Ellomay Capital is active in renewable energy development and power generation across Europe, Israel, and the USA.

How will Ellomay Capital's EUR 110 million financing impact its Italian solar projects?

• Acceleration of Project Timelines: The EUR 110 million financing will enable Ellomay Capital to expedite the construction and development of its Italian solar projects. This financial boost can help in overcoming potential delays and ensure that the projects are completed on schedule.
• Increased Capacity for Renewable Energy: With the funding, Ellomay Capital can enhance its operational capacity, contributing an additional 198 MW to Italy's renewable energy grid. This aligns with Italy's goals to increase its share of renewable energy sources and reduce carbon emissions.
• Economic Boost to Local Communities: The construction and operation of these solar projects are likely to create jobs and stimulate economic activity in the regions where the projects are located. This can have a positive impact on local economies, providing employment opportunities and supporting local businesses.
• Strengthening of Ellomay's Market Position: By securing this significant financing, Ellomay Capital can strengthen its position in the European renewable energy market. This move can enhance its reputation as a reliable developer and operator of renewable energy projects, potentially attracting more investors and partners in the future.
• Risk Mitigation through Structured Financing: The use of senior secured notes issued in multiple tranches allows Ellomay to manage financial risks effectively. This structured approach provides flexibility and security, ensuring that funds are available as needed during different phases of project development.
• Contribution to Italy's Energy Transition Goals: The projects supported by this financing will contribute to Italy's energy transition goals by increasing the share of solar energy in the national energy mix. This aligns with broader European Union targets for renewable energy adoption and carbon neutrality.
• Potential for Future Expansion: Successful implementation of these projects could pave the way for future expansions and additional projects in Italy and other European markets. The experience and financial backing gained through this financing could position Ellomay Capital for further growth in the renewable energy sector.
• Technological Advancements and Innovation: The funding may also allow Ellomay Capital to incorporate advanced technologies and innovative solutions in its solar projects, enhancing efficiency and performance. This can lead to more sustainable and cost-effective energy production.
• Environmental Benefits: By increasing the capacity of solar energy, the projects will contribute to reducing reliance on fossil fuels, thereby decreasing greenhouse gas emissions and promoting environmental sustainability in Italy.