Foresight Group (Foresight) has completed a EUR4.5 million top-up to the Project Bond issued in January 2019 by Pagano & Ascolillo and listed on Borsa Italiana, for the installation of LED street lights on behalf of the Foresight Italian Green Bond Fund.The top-up will support four further street lighting projects to retrofit c7,235 street lighting points across four municipalities in the Centre and South of Italy.
The project bond which was the first of its kind to be issued in Italy for the financing of greenfield projects was innovatively structured such that P&A Public Lighting (the Issuer) could draw down from the Bond as required to provide funding as projects are awarded and progressed.
The initial drawdown of EUR7.25 million has already financed c10,000 streetlights in two Campania municipalities, Polla and Giugliano.
LED street lighting is an established energy efficiency technology, providing street lighting that is both cheaper and more controllable. The environmentally friendly technology features remote operation, real-time control systems for power demand balancing, as well as improved brightness control, monitoring and fault detection and is estimated to be 40-60 per cent more efficient, lasting four times as long as conventional solutions.
Securitisation Services and Banca Finint have played a role in the transaction as well, namely as Issuing Agent and Paying Agent.
Diomidis Dorkofikis, Partner of Foresight, says: “This EUR4.5 million top-up reflects the continuing appetite for energy efficiency solutions from Municipalities across Italy and demonstrates Foresight’s ability to create innovative financing for multiple regional projects in smaller renewable energy and energy efficiency sectors. The Foresight Italian Green Bond Fund continues to fill the funding gap for long term financing and we are working with Pagano & Ascolillo to find further projects in this sector.”
Francesco Labruna, Partner at Sogec Advisor, has added: “Thanks to all participants in this operation, we have eventually concluded a virtuous process which put together a sustainable and responsible corporate policy with a forward looking-financial strategy.”
