Green Forum • 4 December, 2024 at 7:47 AM
Econergy Renewable Energy has announced that its subsidiary, Econergy UK, has secured €28 million in financing to support the development of the Iancu Jianu solar photovoltaic (PV) project in Romania.
Located in Olt County, the project has an installed capacity of approximately 58 MW and is currently under construction. It is expected to be operational by 2025.
The financing was provided by Kommunalkredit Austria AG, a financial institution specializing in infrastructure and renewable energy investments. Kommunalkredit is renowned for its commitment to funding sustainable projects and supporting the transition to a low-carbon economy.
The €28 million loan includes around €26 million for construction expenses and the repayment of previous loans, as well as €2 million to cover VAT-related costs. The loan carries an annual interest rate tied to the six-month EURIBOR, with a margin of 4%-5%.
Designed as a short-term facility to fund the construction and initial operations, the loan will later be refinanced with a long-term facility at a more favorable interest rate. Repayments of principal and interest are set to begin semi-annually from December 31, 2025.