ReneSola, a developer of fully integrated solar projects, has entered into a bridge financing agreement with Eiffel Energy Transition Fund for its photovoltaic projects in Hungary and Poland.
Under the agreement, Eiffel Energy Transition fund is expected to arrange approximately €13.4m financing for ReneSola’s 41.3MW projects in Hungary and 55MW projects in Poland.
ReneSola chairman and chief executive officer Xianshou Li said: “We are excited to partner with Eiffel Energy Transition Fund. This facility demonstrates the confidence that the capital markets put in our ability to successfully develop projects in international markets.
“We continue to expect both Hungary and Poland to be growth markets in the years ahead, and we look forward to further supporting solar deployment in these geographies.”
Eiffel Energy Transition offers short-term debt to developers in the energy transition sector. The fund is managed by Eiffel Investment Group, a French asset management company, and is sponsored by the European Investment Bank, the French environmental agency (ADEME) along with the mutual insurance companies and first rank banks.
Eiffel Energy Transition fund manager Pierre-Antoine Machelon said: “We are happy to contribute to the acceleration of ReneSola’s investments in Poland and Hungary. We look forward to supporting ReneSola in these promising geographies for the solar industry.”
In November 2018, Renesola has secured 26 solar utility projects in Poland with capacity of 1MW for each. The projects are under Poland’s Contract for Difference (CFD) regime and eligible for a 15-year guaranteed tariff of PLN 354.8-358.8/MWh.
The company had also secured an extension to the senior debt facility in June last year, which was provided by Sequoia Economic Infrastructure Income Fund (Sequoia). Sequoia offered €36m for its 55MW of solar projects in Poland, each with a capacity of 1MW.
In December 2017, Sequoia, which invests in a diversified portfolio of senior and subordinated economic infrastructure debt investments, offered a senior loan of €15m for all of ReneSola’s solar power projects in the region. All the solar projects were expected to be completed in three phases.