Econergy Renewable Energy has signed two separate joint ventures worth over €200 million to help fund the construction of a portion of its solar project pipeline in Romania and Poland.
Econergy will receive €150 million from Phoenix Insurance, Israel’s largest insurance business, to help fund the construction of a number of the company’s solar projects in Romania and Poland, which are set to begin construction in 2022.
The loan will be split into two parts: a convertible loan of €110.25 million and a permanent loan of €39.75 million.
Phoenix will have the right to convert the convertible loan issued to the projects for 49 percent of the shareholders’ capital and owners loans of the project partnerships within 60 days of the projects achieving the stage of commercial operation.
RGreen has agreed to form a separate joint venture with Econergy to contribute about €50 million in equity and a loan to fund the building of Econergy’s 90MW Romanian solar project in Parau.
RGreen will also pay Econergy a development fee of €9 million, as well as almost €5 million in management services for the building work and management services for the project’s connection to the power grid, for a ten-year term.
The Econergy Parau project has secured all of the necessary permissions for construction and grid connection, and is now ready to begin building.
The project is expected to begin construction in the second quarter of 2022 and be connected to the grid by the first quarter of 2023, according to Econergy.
Eyal Podhorzer, CEO of Econergy, said: “We are pleased to be developing our strategic partnerships with both Phoenix Insurance and RGreen to support the development, construction and maintenance of our Romanian and Polish renewable energy projects.
“Romania and Poland both represent key target markets for Econergy, and these joint ventures will support the timely and effective delivery of our projects in these countries.”