Currently there is a large secondary market for renewable energy assets in the EU and specifically in Italy. The mature status of the market and availability of funds are pushing for relatively low returns on medium to large transactions. This is creating an ideal opportunity for small transactions based portfolio.
The opportunity is mainly based on availability of small transactions, less competition by the large institutional players and as a result - higher returns and finally creating strong value by building valuable portfolio from small transactions.
So Why Econergy?
Econergy is in the best position to realize this opportunity successfully due to:
- Exclusive track record - over 20 transactions executed
- Clear focus and specific experience - on small to medium size
- Proven Success - acquisition and refinancing of recent transaction – Econergy has already successfully
- realized this opportunity
- Very low execution risk - strong deal flow
- Market - years of local experience and expertise
“Econergy Group announces the completion of Italian 34MW PV portfolio acquisition and refinancing”
Econergy Group, an Israeli investments and management group, announced today the successful closing of an acquisition and refinancing transaction of a 34MW Italian PV portfolio.
Econergy Group has successfully completed and invested over the last 6 years in more than 20 renewable energy transactions, in Italy and in Israel, for a total capacity over 65 MWp. Assets Under Management are in excess of 200Mln, positioning itself a Top 20 solar asset manager in the Italian market.
The consolidated portfolio comprises 11 companies with a total of 30 PV plants, all operating and connected to the grid for an average of 4 years. Econergy was already the asset manager in all 11 companies before and has now acquired together with its majority equity partner, Integrated Asset Management plc, a London based alternative investment group 100% of all companies,. The project companies were acquired with a transaction value in excess of 127 Million Euro from Econergy’s partners, such as Enlight Renewable Energy, Noy Infrastructure Fund, Helios Energy Investments, other private investors as well as Econergy’s own managed funds – Econergy Italy PV1 and PV2 Limited Partnerships.
Simultaneously to the acquisition, the project companies have repaid existing outstanding bank loans and a new senior loan on the new holding level has been procured with attractive pricing, terms and conditions. The new loan was financed by Mediocredito Italiano bank, of the Intesa Sanpaolo group, at what is now considered as one of the top 5 refinancing transactions executed in Italy in the renewable energy sector.
The transaction allows Econergy to manage the Portfolio under a single umbrella structure with both operational and financial benefits that are critical under the current market scenario of compressed marginality. Apart from the benefits of financial and fiscal consolidated management, the company has entered into umbrella agreements of Energy sale, O&M and Technical Management at competitive pricing and conditions.
Econergy and Integrated were assisted by Prothea as exclusive financial advisor, by Bonelli Erede and Agnoli Giuggioli as legal counsels, by D’apollonia and Geosol as technical advisers and by KPMG as auditor and tax advisor.
Eyal Podhorzer, Director of Econergy: “This has been a unique transaction in the renewable energy European environment, entailing multiple acquisitions and major refinancing, all at the same time. This transaction is an important milestone for Econergy in its objective to further grow and expand its portfolio and fund management capabilities internationally”.