Econergy UK, a subsidiary of Israel’s Econergy Renewable Energy Ltd, has secured a €28m loan to support a solar photovoltaic project in Romania.
The financing comes from Austrian lender Kommunalkredit Austria AG and includes approximately €26m for construction costs and repayment of pre-existing loans, along with €2m allocated for VAT expenses, the company announced on Monday.
The loan is short-term, carrying an annual interest rate based on the six-month Euribor, with a margin of 4% to 5%. Econergy plans to refinance it with a long-term loan at a lower interest rate in the future.
The funds will be directed toward the construction and initial operational phases of the Iancu Jianu solar farm, which will have an installed capacity of around 58 MW.
Currently under construction, the project is scheduled to be connected to the grid in 2025.
Econergy operates approximately 250 MW of solar capacity in Romania, including what it describes as the largest solar farm in the country.
The Iancu Jianu project is part of a broader pipeline of five projects, collectively exceeding 250 MW, which are expected to achieve grid connection in the coming months.
