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Terna PV portfolios: Terra Firma touchdown

10 November 2011

Read more: [terna] [solar pv]

On 20 October 2011, the Italian grid-operator Terna rounded out the completion of two project financings for a total amount of Eu741.3 million ($1.007 billion) for two PV portfolios that were sold at closing to private equity fund Terra Firma.

The deals are significant because they represent the largest acquisition of PV assets yet undertaken in Europe and also because the project financings were levered to beyond the project costs, with the debt-to-equity figures pegged to enterprise value rather than the traditional, more conservative project costs. The deal also illustrates private equity funds’ unabated appetite for renewable assets in Europe, particularly solar, despite the increased perception of political and regulatory risk emanating from Spain and in Italy where the regulations determining the incentive regime for solar plants, the Conto Energia, has cut tariffs after the unanticipated development under the previous regime.

The two Terna deals comprise Eu521.3 million...


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