News

Equity and cash fund acquisition of solar parks

First Solar

Published

July 27, 2015

Comments

comments icon

0

Share

Published:

July 27, 2015

Comments:

comments icon

0

Share

Transeastern Power Trust, a Toronto-based investor in renewable energy assets chiefly in Romania and Eastern Europe, said it closed the previously announced acquisition of two photovoltaic plants in Romania and a CAD 5 million (EUR 3.44 million) secured debt facility provided by Sprott Resource Lending Partnership. The aggregate purchase price (net of assumed debt) for the solar companies is EUR 9 million, Transeastern’s press release said. The deal was partly funded by a transaction from July 24 in which RG Renovatio Group Limited of Cyprus acquired a 26.65% share in the Canadian entity for EUR 4.68 million, the document said. Most of the remaining funds are cash.

The solar plants have been in production for over two years with a total capacity of over 16 MW, the press release said.

J. Colter Eadie, chief executive officer of Transeastern, commented: “The acquisition of these two projects has been transformative for the trust. We have more than doubled our installed power production capacity on a basis that we expect to be immediately and highly accretive to the trust and dramatically lowered our projected payout ratio. We anticipate that approximately half of our power generation will now come from solar. This diversification reduces our exposure to hydrology, and de-risks our entire operation.”

Transeastern’s officials had said earlier this year they were focusing on Eastern Europe’s markets for lower multiples of cash flow and much higher returns than in the continent’s west. The strategy laid out for the public-traded investor included diversifying from hydro with solar and wind. Transeastern went public in May last year. It has direct and indirect subsidiaries in Canada, the Netherlands and Romania.

Related Articles

belgrade energy forum bef 2025 western balkans region cooperation

BEF 2025: Regional cooperation can facilitate energy transition, energy security

22 May 2025 - Belgrade Energy Forum featured representatives from the governments of Montenegro, Croatia, Hungary, the Republic of Srpska, and Serbia, and from UNECE

heating plant ljubljana energetika te tol

Slovenia keeps phasing out coal as key heating plant boosts natural gas share to 60%

22 May 2025 - TE-TOL, the main district heating provider in the Slovenian capital, Ljubljana, has taken over a newly built gas-steam unit

new york equinor empire wind

Equinor resumes New York offshore wind project of 810 MW after stop-work order lifted

21 May 2025 - The project's first phase, the 810 MW Empire Wind 1, is expected to generate electricity for some 500,000 homes in New York

eu renewable green hydrogen subsidies

EU awards nearly EUR 1 billion in subsidies to renewable hydrogen projects

21 May 2025 - The subsidies for renewable hydrogen were awarded via the second auction organized by the European Hydrogen Bank (EHB)