Econergy Renewable Energy, a leading investor, developer and operator in renewable energy projects has finalised a loan agreement with Phoenix Insurance totalling 150 million euro to support the construction of part of its pipeline of projects in Romania and Poland, the company announced.
Phoenix Insurance, the largest insurance company in Israel, will provide Econergy 100 million euro and other 50 million line to invest in the company’s Romanian and Polish solar PV pipelines, respectively. As part of the agreement, approximately 110 million euro will be granted in the form of a convertible loan and a total of 40 million will be granted as a fixed loan. The announcement finalises the loan arrangement originally agreed in February 2022, the company added.
The agreement will support Econergy’s ambitions to develop and expand its Romanian and Polish solar PV projects while maintaining financial flexibility.
Econergy is one of the main developers of renewable energy in Romania with a pipeline of projects in development of over 1.7GW, of which over 300MW has begun construction. In Poland, Econergy has a pipeline of over 1.6GW under development and the Company has already started the construction of its first 50MW first solar PV project.
“We are delighted to have finalised this cooperation agreement with Phoenix for some of our projects in Romania and Poland. We see this as an important expression of confidence by a leading financier – both in the company and in its business model – especially against the background of the uncertainty that characterises the global capital and energy markets,” said Eyal Podhorzer, Econergy’s CEO.
“In addition to Rgreen Invest’s €350m strategic investment, this new agreement marks a vital step in Econergy’s development and will support our ability to implement ready-made projects from our large backlog while maintaining financial flexibility. We are making strong progress in the development of this backlog and we expect to see income from connected projects starting in the second quarter of this year,” he added.