Israel’s Econergy Renewable Energy Ltd (TLV:ECNR) has finalised a loan agreement with Phoenix Insurance, providing it with EUR 150 million (USD 159.8m) to back its project pipeline in Romania and Poland.
The debt, originally agreed in February 2022, will be split between a EUR-110.25-million convertible loan and a EUR-39.75-million fixed loan, Econergy said last week. The funds will be directed towards several of the renewables developer’s projects in the target countries, with about two-thirds of the total, equal to some EUR 100 million, to be allocated for schemes in Romania.
The Israeli firm has a pipeline exceeding 1.7 GW in Romania, of which around 300 MW are being built, its website shows. In Poland, it is working on 1.66 GW of projects, either under development or under construction.
According to the initial agreement, the funding deal gives Phoenix the right to convert the larger debt facility for 49% of the shareholders’ capital and owners loans of the project partnerships. This option will be possible within 60 days of the plants’ commercial operations.
In November 2022, Econergy received a EUR-250-million cash boost from French independent asset manager Rgreen Invest. The financing is earmarked for the company’s European projects, including in Romania.
(EUR 1.0 = USD 1.065)
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