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Econergy secures EUR200m in joint ventures with Phoenix Insurance and RGreen

Econergy Renewable Energy, an investor, developer and operator in renewable energy projects across Europe, has agreed separate joint ventures with Phoenix Insurance and RGreen Invest totalling over EUR200 million to support the construction of part of its pipeline of projects in Romania and Poland.

Phoenix Insurance, the largest insurance company in Israel, will provide Econergy with EUR150 million to support the construction of a number of the company’s solar projects in Romania and Poland that are expected to start construction during 2022. The loan will be divided into EUR110.25 million as a convertible loan and EUR39.75 million as a permanent loan. Within 60 days of the projects reaching the stage of commercial operation, Phoenix will have the right to convert the convertible loan granted to the projects for 49 per cent of the shareholders’ capital and owners loans of the project partnerships.

A separate joint venture has been agreed between Econergy and RGreen. The French asset manager will provide approximately EUR50 million in equity and loan to support the construction of Econergy’s 90MW Romanian solar project in Parau. Additionally, RGreen will make available a development fee to Econergy of EUR9 million and nearly EUR5 million for management services for the construction work and management services for the project’s connection to the electricity grid for a period of 10 years.

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