Alternus Energy has completed financing agreements with Deutsche Bank for a €500m facility, to fund the acquisition of solar PV assets throughout Europe.
The facility has an approved initial draw of €80m.
The debt facility will provide non-recourse project finance and incorporates both senior and mezzanine tranches, except for certain arrangement and commitment fees relating to the facility.
The capital will be used to fund the acquisition of operating and in-construction projects.
It will also support the closure of current contracted acquisitions, finance construction of up to 600MW of the development pipeline on a revolving basis in order to support the Company’s planned growth to 2025.
The bank will also act as lead arranger in a syndication of the remaining facility as and when projects are submitted for approval.
Alternus anticipates expanding its current annual recurring revenues of approximately €30m to more than €200m by the end of 2025.
Alternus Energy’s operational portfolio of solar assets, located across five European countries, provides attractive long term recurring cash flow generation with approximately €400m lifetime revenues remaining of which circa €172m is contracted.
Alternus CEO Vincent Browne said: “The successful agreement of this facility, amidst particularly turbulent times in the capital markets, can be attributed to the hard work of our team alongside our funding partner Deutsche Bank.
“This facility will support development projects and provide construction finance across multiple European jurisdictions.
“Securing this facility will allow us to accelerate our growth initiatives over the next few years.
“Deutsche Bank is an ideal partner as they share our vision of combatting climate change through the delivery of clean energy assets while maximising stakeholder benefits in the process.”