Alternus Energy Group PLC (EURONEXT:ALT) has announced the completion of financing agreements with Deutsche Bank for a facility which will provide it with up to 500 million euros, with an approved initial draw of 80 million euros, to fund the acquisition of solar PV assets throughout Europe.
The international clean energy producer said the debt facility will provide non-recourse project finance and incorporates both senior and mezzanine tranches, except for certain arrangement and commitment fees relating to the facility.
The capital will be used to fund the acquisition of operating and in-construction projects. It will also support the closure of current contracted acquisitions, finance construction of up to 600 MW of the development pipeline on a revolving basis in order to support the company’s planned growth to 2025. The bank will also act as lead arranger in a syndication of the remaining facility as and when projects are submitted for approval.
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Alternus anticipates expanding its current annual recurring revenues of approximately 30 million euros to more than 200 million euros by the end of 2025. Alternus Energy’s operational portfolio of solar assets, located across five European countries, provides attractive long-term recurring cash flow generation with approximately 400 million euros lifetime revenues remaining of which circa 172 million euros is contracted.
Commenting on the facility in a statement, Vincent Browne, Alternus Energy group CEO, said: “The successful agreement of this facility, amidst particularly turbulent times in the capital markets, can be attributed to the hard work of our team alongside our funding partner Deutsche Bank. This facility will support development projects and provide construction finance across multiple European jurisdictions.
"Securing this facility will allow us to accelerate our growth initiatives over the next few years. Deutsche Bank is an ideal partner as they share our vision of combatting climate change through the delivery of clean energy assets while maximising stakeholder benefits in the process.”
Headquartered in Ireland, and listed on the Euronext Growth Oslo, Alternus Energy develops, installs, owns and operates midsized utility-scale solar parks.
The company, which also has offices in The Netherlands and the United States, aims to own and operate over 3.5 gigawatts of solar parks by the end of 2025.
Contact the author at jon.hopkins@proactiveinvestors.com