News

Equity and cash fund acquisition of solar parks

First Solar

Published

July 27, 2015

Comments

0

Share

Published:

July 27, 2015

Comments:

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

GGF Kostadinov Green investment inflection point many countries

GGF’s Kostadinov: Green investment is nearing inflection point in many countries

20 May 2024 - The Balkans require a critical mass of renewables development to unleash green investment, Borislav Kostadinov from GGF said at Belgrade Energy Forum

western-balkan-power-utilties-decarbonization-plans

Decarbonizing Western Balkan power utilities: ambitious but flexible plans, with focus on investments and new technologies

17 May 2024 - Power utilities in the Western Balkans have ambitious goals for 2050, but are flexible in mapping the path because the development of technologies is unpredictable

serbia heating plants biomass eu kfw djedovic miscevic vucevic konrad

Five Serbian heating plants to be converted from coal, oil to biomass

17 May 2024 - Serbia will build heating plants in Niš, Bajina Bašta, Prijepolje, Rača and Novi Pazar to replace fuel oil and coal in district heating systems

Banks Serbia receiving lot requests grid connection guarantees Belgrade Energy Forum

Banks in Serbia receiving lot of requests for grid connection guarantees

17 May 2024 - Banks in Serbia are receiving numerous requests for guarantees for renewables requiring grid connection and most investors have firm collateral instruments, according to speakers at Belgrade Energy Forum