Econergy UK, a subsidiary of Israeli company Econergy Renewable Energy, has secured a 28 million euro loan for a solar project in Romania. The financing, provided by Austrian bank Kommunalkredit Austria, includes approximately 26 million euros for construction costs and repayment of existing owner loans, along with 2 million euros to cover VAT expenses.
This short-term loan is linked to the six-month Euribor, with an annual margin between 4% and 5%. Econergy plans to refinance the loan with a long-term facility at a lower interest rate.
The funds will be used for the construction and initial operations of the Iancu Jianu solar project, which will have an installed capacity of around 58 MW. Currently under development, the project is expected to be operational by 2025.
Econergy, which focuses on European markets, currently manages about 250 MW of solar capacity in Romania, including the country’s largest solar power plant. The Iancu Jianu project is part of a larger initiative involving five solar projects with a combined capacity of over 250 MW, all set to be commissioned soon.
