Ellomay executes pre-hedge transaction for 300-MW Spanish solar project

The Spanish unit of Ellomay Capital Ltd (TASE:ELLO) has executed a pre-hedge transaction related to the prospective project financing for the construction of the 300-MWp Talasol solar photovoltaic (PV) plant in Spain.

Talasol Solar SL has carried out the transaction with Goldman Sachs International. It is a fixed for floating interest rate swap intended to lock-in current market floating rates, the Israeli renewables company explained in a statement.

"Talasol is getting near to financial close, and we wanted to make sure that the potential changes in the interest rates won't have a material effect on its feasibility," said Ran Fridrich, CEO and a board member of Ellomay.

The Talasol project will be realised at a site in the municipality of Talavan, Caceres, at an estimated total cost of between EUR 200 million (USD 234m) and EUR 230 million. It will be financed by a Deutsche Bank-led group.

The solar park is seen to enter into service in the first half of 2020. It recently executed a financial power swap in respect of roughly 80% of its expected output with an international energy company, whose name was not disclosed.

(EUR 1.0 = USD 1.172)

Choose your newsletter by Renewables Now. Join for free!