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Enel, F2i seal €102m Italian solar acquisition

A joint venture set up by the pair has bought the entire 60MW Italian solar portfolio of Canadian-listed developer Etrion.

A tie-up between Italian infrastructure fund manager F2i and energy group Enel has bought a 60MW solar portfolio in Italy from developer Etrion in a deal worth €102 million.

The transaction includes a group of 10 plants with a total of 53.4MW capacity plus another seven sites with a combined capacity of 6.7MW. They have all been operational since 2010 or 2011.

The deal agreed between F2i and Enel’s joint venture includes an initial cash consideration of €78 million, with an additional €24 million to be paid in earn-out payments upon the deal closing.

Ultor, the joint venture company, has also assumed project-level debt of €221 million. Ultor is the result of an agreement between F2i and Enel last October to form a joint venture to bring together Italian solar assets owned by a variety of developers and financial institutions. Seeded with 210MW, it now owns 325MW.

Etrion refinanced the 53.4MW portfolio in December last year in a €222 million deal. It received a debt facility and project finance loan worth €187 million from Natixis, BNP Paribas CIB and Creval while SCOR Infrastructure Loans, a subsidiary of French insurance giant SCOR group, bought a further €35 million in project bonds.

Etrion said it would redirect the funds of the sale to its solar investments in Japan. Earlier this month, its second project in the country – a 24.7MW site – began operating.

While Etrion is based in Switzerland, it is listed on the Toronto Stock Exchange and the OMX Stockholm exchange in Sweden. It is 24 percent owned by the Lundin family.