Ellomay Capital has achieved financial close for the 300MW Talasol photovoltaic plant in the municipality of Talaván in Extremadura, west Spain.

The company has sold 49% of its indirect holdings in the project company Talasol Solar to GSE 3 UK Limited owned by Capital Dynamics, and Fond-ICO Infraestructuras II, FICC (partners).

Under a credit facilities assignment, and sale and purchase of shares agreement, the partners paid approximately €16.1m for 49% of Talasol’s shares and a further 49% of the shareholder development loans.

Ellomay board member and CEO Ran Fridrich said: “The company is proud of the many accomplishments achieved thus far in the entrepreneurial process of the Talasol Project, which include a first-in-kind PPA that enabled obtaining project finance in extraordinary interest terms, and of the process of introducing quality partners to the project in a high premium.”

“The total CAPEX for the Talasol project is expected to be approximately €228m.”

The total capital expenditure (CAPEX) for the Talasol project is expected to be approximately €228m. This includes an equity investment of €97m from Ellomay’s and new shareholders of Talasol.

From the total CAPEX, an aggregate amount of nearly €131m will be provided by a term loan obtained from Rabobank, ABN AMRO and Deutsche Bank and the European Investment Bank.

Following these transaction developments, Talasol project’s engineering, procurement and construction (EPC) contractor METKA EGN received a notice to proceed with construction works.

Construction is expected to be completed in 16 months.