Ellomay's 300-MW solar farm in Spain to be refinanced

• Israeli renewables programmer Ellomay Capital Ltd (TASE: ELLO) has actually gotten to an agreement with a group of banks to refinance its majority-owned 300-MW Talasol solar farm in Spain.

The funds will be reached the entity that has the plant, Talasol Solar SL, in which Ellomay holds a 51% stake, the Israeli company stated. The obtaining celebration expects to close the brand-new financing in the coming weeks.

Under the agreement with "European institutional lenders", Talasol will be provided a two-tranche term car loan facility of EUR 175 million (USD 198.2 m) lugging a fixed annual interest rate at a weighted standard of around 3%. The banks will certainly give one term financing in the amount of EUR 155 million for 22 and a half years, and another term loan of EUR 20 million for 21 years, Ellomay claimed.

The new agreement will certainly stretch the heavy ordinary life of the solar farm's funding to about 11 and a fifty percent years from 5 and a fifty percent years under the existing funding terms.

Talasol will use the new money to repay the present impressive project financing debt amounting to EUR 121 million.

The Talasol solar farm, located in the Spanish area of Extremadura, markets a lot of its outcome under a ten-year power purchase agreement (PPA) with an undisclosed power company. The continuing to be life of the PPA is nine years.

Ellomay CEO Ran Fridrich claimed he expects the refinancing to enhance the cash flow of Talasol over the remainder of the PPA life by some EUR 3 million each year typically. The better cash flow will certainly also boost Talasol's capability to disperse returns to its investors, Ellomay included, included Fridrich.