Ellomay Capital Secures €110M for Italian Solar Portfolio

Ellomay Capital Ltd. (NYSE American; TASE: ELLO) has announced the execution of project finance agreements for its 198 MW solar portfolio in Italy. The company has secured a €110 million non-recourse loan from a reputable European institutional investor, structured in multiple tranches, to finance the construction and related expenses of the Italian Solar Portfolio. The loan has a competitive interest rate of 4.50% per annum, to be repaid in semi-annual installments over a 23-year period.

The Italian Solar Portfolio includes three operational solar facilities with a combined capacity of approximately 38 MW, as well as additional projects with an aggregate capacity of approximately 160 MW that have reached ready-to-build status. The financing agreement allows Ellomay to pursue these developments without burdening its balance sheet, thanks to the non-recourse loan structure that limits shareholder risk.



The European solar energy market is experiencing significant growth, driven by favorable public policies, growing investor interest, technological advancements, and energy transition goals. Italy, in particular, has set ambitious renewable energy targets, with the Integrated National Energy and Climate Plan (PNIEC) aiming for 49% of total electricity consumption from renewables by 2030. This supportive regulatory environment, coupled with strong consumer demand for solar energy, has made Italy an attractive market for investors.

The 4.50% interest rate on the senior secured notes reflects the attractiveness of solar projects in Italy, given the combination of supportive policies, strong demand, and stable income generation. This competitive rate demonstrates investors' confidence in the long-term prospects of the Italian solar energy market and the potential for Ellomay's projects to generate stable income.

Ellomay Capital's strategic focus on renewable energy and power projects in Europe, Israel, and the USA has positioned the company to capitalize on the growing demand for clean energy. The successful execution of the project finance agreements for the Italian Solar Portfolio further solidifies Ellomay's commitment to expanding its renewable energy portfolio and driving growth in the sector.

In conclusion, Ellomay Capital's €110 million financing for its 198 MW solar portfolio in Italy reflects the growing investor interest in the European solar energy market and the potential for stable income generation from solar power projects. The competitive interest rate and non-recourse loan structure demonstrate the attractiveness of solar projects in Italy and the potential for Ellomay to drive growth in the sector.