Econergy secures €28 million financing for Romanian solar project
Published by Jessica Casey,
Editor
Energy Global,
Econergy Renewable Energy Ltd, a leading European independent power producer (IPP) specialising in renewable energy, has announced that its subsidiary, Econergy UK, has signed a financing agreement for €28 million in project funding for the Iancu Jianu solar photovoltaic (PV) project in Romania. The project, which has an installed capacity of approximately 58 MW, is currently under construction and expected to be connected during 2025.
Kommunalkredit Austria AG, a leading financial institution specialising in infrastructure and renewable energy projects, provides the financing. Kommunalkredit Austria AG is recognised for its commitment to facilitating sustainable investments and supporting the transition to a low-carbon economy. Their collaboration with Econergy underscores Europe's shared vision of advancing renewable energy deployment.
- Loan Breakdown: The €28 million loan includes about €26 million earmarked for project construction costs and repayment of pre-existing owner loans and approximately €2 million allocated for VAT expenses.
- Interest: The loan will carry an annual interest rate based on the six-month EURIBOR, with a yearly margin of 4 – 5%. As this short-term loan is intended to cover the project's construction and initial operation phases, the company plans to refinance it with a long-term loan at a lower interest rate.
- Repayment schedule: Principal and interest payments will be made semi-annually starting 31 December 2025. A balloon payment will be made for any remaining principal at the final repayment date.
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Read the article online at: https://www.energyglobal.com/solar/02122024/econergy-secures-28-million-financing-for-romanian-solar-project/
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