Developer Econergy Renewable Energy has agreed separate joint ventures totalling over €200m to support the construction of part of its pipeline of solar projects in Romania and Poland.
Phoenix Insurance, the largest insurance company in Israel, will provide Econergy €150m to support the construction of a number of the company’s solar projects in Romania and Poland that are expected to start construction during 2022.
The loan will be divided into €110.25m as a convertible loan and €39.75m as a permanent loan.
Within 60 days of the projects reaching the stage of commercial operation, Phoenix will have the right to convert the convertible loan granted to the projects for 49% of the shareholders’ capital and owners loans of the project partnerships.
A separate joint venture has been agreed with RGreen whereby the French asset manager will provide approximately €50m in equity and loan to support the construction of Econergy’s 90MW Romanian solar project in Parau.
Additionally, RGreen will make available a development fee to Econergy of €9m and nearly €5m for management services for the construction work and management services for the project’s connection to the electricity grid for a period of 10 years.
Econergy’s Parau project has received all the required permits for construction and connection to the electricity grid and is ready for construction.
Econergy estimates that the project will start construction during the second quarter of 2022 and will be connected to the grid no later than the first quarter of 2023.
Econergy CEO Eyal Podhorzer said: “We are pleased to be developing our strategic partnerships with both Phoenix Insurance and RGreen to support the development, construction and maintenance of our Romanian and Polish renewable energy projects.
“Romania and Poland both represent key target markets for Econergy, and these joint ventures will support the timely and effective delivery of our projects in these countries.”