Etrion gets funding for another solar-power plant in Italy

Aug 8, 2011 - Swiss-based solar energy company Etrion Corp (TSE:ETX, STO:ETX) said today it had secured financing for its 2.6 MW Nettuno project in Italy within a previously announced facility from Natixis SA (EPA:KN), WestLB and Mediocreval.

The non-recourse senior loan of a total EUR 60 million (USD 86m) will be used for 17.8 MW projects in operation or under construction in Italy. The facility, with a maturity of 18 years following construction, will cover up to 84% of the estimated project costs.

When it was first announced in December 2010, the loan from Natixis, WestLB and Mediocreval was for EUR 57 million and covered four solar-power plants with a total capacity of 15 MW.

With the latest tranche now in place, Etrion will be able to prepay an EUR-28-million bridge loan from the Lundin family upon completion of the 13 MW projects under construction in the third quarter, Etrion's CEO, Marco Northland, said.

Etrion has now secured financing for a project portfolio of a total 60 MW.

The Nettuno photovoltaic (PV) plant is currently under construction in Lazio, in central Italy, and completion is scheduled for the third quarter of 2011. The financing from Natixis, WestLB and Mediocreval also covers the Borgo Piave 3.5 MW park and the Rio Martino 1.7 MW park, both completed in December 2010, as well as two 5 MW parks in Puglia, southern Italy, due for completion in the third quarter.

The five ground-based plants will have an annual electricity production of some 28 million kWh and nearly EUR 9 million in earnings before interest, tax, depreciation and amortisation (EBITDA).

(EUR 1.0 = USD 1.434)

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