Ellomay Capital Ltd. (“Ellomay” or the “Company”), a renewable energy and power generator and developer of renewable energy and power projects in Europe, Israel and the USA, reported that its wholly-owned subsidiary, Ellomay Holdings Luxembourg Sarl (“Ellomay Luxembourg”), which among other assets owns a portfolio of 198 MW solar in Italy that includes operating, under construction and “ready to build” projects (the “Italian PV Portfolio”), achieved an important milestone towards the financing of the Italian PV Portfolio (the “Project Finance”) through the entrance of commitment letter and term sheet (the “Commitment Letter”) between Ellomay Luxembourg and a reputable European institutional investor (the “Lender”).
The Commitment Letter sets forth the terms and conditions of the Project Finance, in an amount of up to €110 million. Subject to the terms and conditions agreed by the Company and the Lender, the Lender is willing to provide Ellomay Luxembourg or its subsidiaries that directly own the Italian PV Portfolio a non-recourse merchant loan by way of senior secured notes, which may be drawn down in several installments, with a final repayment date of 23 years following financial closing. The Project Finance is intended to finance or refinance the construction and related expenses of Italian PV Portfolio.
The Lender’s commitments are subject to the execution of detailed Project Finance documentation by no later than December 31, 2024 (or such later date as agreed by the parties) and the satisfactory completion of due diligence by the Lender. Therefore, we cannot assure you that the financing contemplated by the Commitment Letter will be executed or consummated and, to the extent executed and consummated, what the final terms of such financing will be.
