TEL-AVIV, Israel, Feb. 14, 2021 /PRNewswire/ — Ellomay Capital Ltd. (NYSE American; TASE: ELLO) (“Ellomay” or the “Firm“), a renewable power and energy generator and developer of renewable power and energy initiatives in Europe and Israel, right now introduced all circumstances precedent had been met beneath the conditional license issued to the pumped storage hydro venture to be constructed within the Manara Cliff, Israel (the “Manara Mission“). The Firm not directly owns 83.333% of Ellomay Pumped Storage (2014) Ltd. (the “SPC“), which owns the Manara Mission.
The Manara Mission is projected to value roughly NIS 1.53 billion (roughly $472 million). Amongst the circumstances fulfilled is the monetary closing of the long-term venture finance services for the Manara Mission (the “Mission Finance“), the execution of an engineering, procurement and development settlement (the “EPC Settlement“) and the execution of an operation and upkeep settlement (the “O&M Settlement“) for the Manara Mission.
The Mission Finance might be supplied by a consortium of Israeli banks and institutional traders, organized and led by Mizrahi-Tefahot Financial institution Ltd. The Mission Finance is within the combination quantity of NIS 1.18 billion (roughly $364 million), and consists of: (i) a senior secured tranche at a hard and fast fee of curiosity (with base rate of interest equal to the yield to maturity of Israeli treasury bonds with like length of the mortgage), linked to the Israeli Shopper Value Index and to be repaid over a interval of 19.5 years from the industrial operation date; and (ii) a subordinated secured tranche at a floating fee of curiosity (Financial institution of Israel fee plus unfold) with a barely shorter maturity. The weighted common annual rate of interest unfold of the Mission Finance is roughly 3.3% through the development part and roughly 2.5% through the industrial operation part. The Mission Finance consists of customary phrases in reference to early prepayment, acceleration of funds upon sure breaches and limitations on distributions. The Mission Finance additionally consists of ancillary services corresponding to Standby, VAT, Ensures and Debt Service Reserve services in an combination quantity of roughly NIS 146 million (roughly $45 million). The ADSCR for default is 1.05:1.00.
75% of the SPC is owned by Ellomay Water Vegetation Holdings (2014) Ltd. (“Ellomay Water“) and the remaining 25% are owned by Sheva Mizrakot Ltd. (“Sheva“). 66.667% of Sheva is owned by Ampa Investments Ltd. (“Ampa“) and the remaining 33.333% are owned by Ellomay Water. Accordingly, the Firm holds (by means of its direct holdings within the SPC and thru its holdings in Sheva) 83.333% of the Manara Mission, and the remaining 16.667% of the Manara Mission are held by Ampa by means of its holdings in Sheva. Sheva and Ellomay Water undertook to offer combination financing of roughly NIS 353 million (roughly $ 108.7 million), professional rata to their holdings within the Manara Mission.
The Mission Finance consists of necessary money sweeps upon sure cowl ratio and different occasions, money sweep funds in reference to the subordinated loans and different lender safety mechanisms. As well as, the Mission Finance settlement permits the shareholders of the Manara Mission to withdraw a builders’ price on the Precise Completion Date (as such time period is outlined within the Mission Finance settlement) of the Manara Mission, topic to availability of funding, supplied sure cowl ratios are met.
The Firm and Ampa supplied sure sponsor assist undertakings in direction of the lenders commensurate with the scale and complexity of the venture and the size of the development interval.
As well as, the Firm undertook in reference to the Mission Finance to take care of management over the Manara Mission and to offer customary pledges on the property of and rights within the venture. The shareholders of the SPC supplied pledges over their shares, the shareholders’ loans and the shareholders’ Mezzanine mortgage.
The EPC Settlement was executed beneath a “turnkey” contract with Electra Infrastructure Ltd. (“Electra Infrastructure“), one in every of Israel’s largest development corporations. The combination consideration payable to Electra Infrastructure beneath the EPC Settlement is predicted to be roughly NIS 1.1 billion (roughly $338 million). In accordance with the EPC Settlement Voith Hydro, the world’s main producer of hydroelectric generators (“Voith Hydro“) was nominated because the subcontractor that might be offering the electro-mechanical gear to the Manara Mission.
The O&M Settlement was executed with Mekorot Israel Nationwide Water Co., the Israeli nationwide water firm (“Mekorot“), totally owned by the Israeli Authorities, Voith Hydro and Verbund Hydro, one of many largest hydroelectric corporations in Europe with in depth experience within the operation of hydroelectric energy vegetation. The O&M Settlement supplies that the O&M contractors might be concerned within the development course of by means of a mobilization interval and that O&M companies might be supplied for a twenty yr interval, throughout which Mekorot, Voith Hydro and Verbund will present O&M companies for the preliminary three years, with Mekorot offering O&M companies solely for the remaining 17 years.
The Manara Mission additionally acquired the tariff approval from the Israeli Electrical energy Authority in addition to a constructing allow. The development interval of the Manara Mission is predicted to be 62.5 months. The development is predicted to begin following receipt of the Israeli Electrical energy Authority’s approval that the circumstances precedent had been met, which is predicted to be obtained within the coming weeks.
Ran Fridrich, CEO and a board member of Ellomay commented: “Ellomay Capital is happy to report the monetary closing of the Manara Mission. After an extended and sophisticated interval, and beneath very difficult timeframes, the financing, EPC and O&M agreements had been executed. The Firm views this venture as a considerable part of the power storage portion of its portfolio of property and estimates that the demand for power storage will improve. Pumped storage is probably the most confirmed, environment friendly and inexperienced storage expertise in existence. As well as, pumped storage represents the bottom land footprint in comparison with its storage talents. The venture is predicted to have an extended working interval with low working prices. The Firm wish to thank the entire people concerned with the venture, largely the Firm’s staff and advisors who’ve labored tirelessly in a really difficult interval and assisted the Firm in reaching this achievement.”
About Ellomay Capital Ltd.
Ellomay is an Israeli primarily based firm whose shares are registered with the NYSE American and with the Tel Aviv Inventory Change beneath the buying and selling image “ELLO”. Since 2009, Ellomay Capital focuses its enterprise within the renewable power and energy sectors in Europe and Israel.
Thus far, Ellomay has evaluated quite a few alternatives and invested important funds within the renewable, clear power and pure assets industries in Israel, Italy and Spain, together with:
- Roughly 7.9MW of photovoltaic energy vegetation in Spain and a photovoltaic energy plant of roughly 9 MW in Israel;
- 9.375% oblique curiosity in Dorad Power Ltd., which owns and operates one in every of Israel’s largest non-public energy vegetation with manufacturing capability of roughly 860MW, representing about 6%-8% of Israel’s whole present electrical energy consumption;
- 51% of Talasol, which is concerned in a venture to assemble a photovoltaic plant with a peak capability of 300MW within the municipality of Talaván, Cáceres, Spain;
- Groen Fuel Goor B.V., Groen Fuel Oude-Tonge B.V. and Groen Fuel Gelderland B.V., venture corporations working anaerobic digestion vegetation in the Netherlands, with a inexperienced fuel manufacturing capability of roughly 3 million, 3.8 million and 9.5 million (with a license to supply 7.5 million) Nm3 per yr, respectively;
- 83.333% of Ellomay Pumped Storage (2014) Ltd., which is concerned in a venture to assemble a 156 MW pumped storage hydro energy plant within the Manara Cliff, Israel.
For extra details about Ellomay, go to http://www.ellomay.com.
Info Regarding Ahead-Trying Statements
This press launch incorporates forward-looking statements that contain substantial dangers and uncertainties, together with statements which might be primarily based on the present expectations and assumptions of the Firm’s administration. All statements, apart from statements of historic details, included on this press launch relating to the Firm’s plans and targets, expectations and assumptions of administration are forward-looking statements. Using sure phrases, together with the phrases “estimate,” “venture,” “intend,” “count on,” “consider” and comparable expressions are meant to establish forward-looking statements inside the that means of the Non-public Securities Litigation Reform Act of 1995. The Firm might not really obtain the plans, intentions or expectations disclosed within the forward-looking statements and you shouldn’t place undue reliance on the Firm’s forward-looking statements. Numerous essential components may trigger precise outcomes or occasions to vary materially from these which may be expressed or implied by the Firm’s forward-looking statements, together with the entire dangers regarding initiatives beneath growth and the affect of the Covid-19 pandemic on the Firm’s operations and initiatives, together with in reference to steps taken by authorities in nations wherein the Firm operates, adjustments out there worth of electrical energy and in demand, regulatory adjustments, adjustments within the provide and costs of assets required for the operation of the Firm’s services (corresponding to waste and pure fuel) and within the worth of oil, and technical and different disruptions within the operations or development of the facility vegetation owned by the Firm. These and different dangers and uncertainties related to the Firm’s enterprise are described in larger element within the filings the Firm makes now and again with Securities and Change Fee, together with its Annual Report on Type 20-F. The forward-looking statements are made as of this date and the Firm doesn’t undertake any obligation to replace any forward-looking statements, whether or not on account of new data, future occasions or in any other case.
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SOURCE Ellomay Capital Ltd.