Etrion has closed an additional tranche of financing to include its 2.6MW Nettuno project within the non-recourse senior loan agreed with Natixis, WestLB and Mediocreval.
In total, the loan is now valued at around €60 million and accounts for 17.8MW of operational or under construction solar plants in Italy. The loan will cover up to 84% of estimated project costs with a maturity of 18 years following construction.
“This financing demonstrates the continued availability of long-term, non-recourse loans for solar power projects in Italy,” Etrion’s CEO, Marco Northland, said. “The latest tranche will allow us to pre-pay the €28 million bridge loan from the Lundin family when we complete our 13MW under construction in the third quarter. Etrion now has a fully-funded solar portfolio of 60MW.”
In December, 2010 the first two projects in the portfolio were completed – the 3.5MW Borgo Piave and 1.7MW Rio Martino parks – and between now and the year’s end a further three are due to be connected to the grid – two 5MW systems in Puglia built by ABB and the Phoenix Solar-installed Nettuno plant.
Every year the five ground-mounted solar plants are expected to produce around 28 million kWh of electricity and almost €9 million in pre-tax earnings. Each park will also benefit from Italy’s feed-in-tariff.