ICO, through AXIS, participates in the construction of a photovoltaic plant in Cáceres
- It will be one of the largest photovoltaic plants in Spain and will help in the fight against climate change.
AXIS, the venture capital company of the ICO group, has signed its participation through the Fond-ICO Infraestructuras II fund in Talasol, a project to build a photovoltaic plant with a maximum capacity of 300 MW in the municipality of Talaván (Cáceres).
Participation in the Talasol project has been acquired from Ellomay Capital Ltd, an Israel-based company whose business focuses on the renewable energy sector in Europe and Israel.
Through this operation, the Israeli company has sold 49% of the Talasol project shares to Fond-ICO Infraestructuras II and the UK company Capital Dynamics (24.5% respectively). The remaining 51% of the shares will be retained by the Ellomay Group.
The total project investment amounts to 228 million euros, of which 97 million euros will be contributed by the three shareholders, and specifically AXIS, through Fond-ICO Infraestructuras II, will contribute 23.7 million euros.
In addition to the funds provided by the shareholders, the project has raised a project finance of 131 million euros with a group of banks (Deutsche Bank, Coöperatieve Rabobank U.A. and ABN Amro), in which the EIB also participates through a loan from the Juncker Plan. It should be noted that the project's revenue will come from the sale of electricity at market prices and that a Power Purchase Agreement has been signed to ensure this.
The plant, with a useful life of around 30 years, will begin construction in the coming weeks and will be operational from the second half of 2020. It will become one of the largest photovoltaic plants in Spain. The construction and operation of the plant will be carried out by the Greek company Metka, with vast experience in the sector, although it incorporates other Spanish equipment suppliers.
The project represents an important contribution to the fight against climate change, where Spain has committed to increasing renewable generation from 20% in 2020 to 27% in 2030.
The project also contributes to the economic dynamism of Extremadura, through the creation of 500 jobs during construction and 15 direct jobs in the plant operation phase, to which the indirect and induced jobs should be added.
Fond-ICO Infraestructuras II is a fund managed by AXIS whose main objective is both direct investment in sustainable infrastructure projects and investment through other investment funds in Spain and abroad with Spanish companies. This fund has an allocation of 400 million euros, approved in December 2018, and mainly invests in transport, energy, environmental and social infrastructure. The fund was launched in 2019.
This action by AXIS forms part of the ICO Group's global strategy, which has included sustainability criteria in all its activities and investments, in order to promote the development of a sustainable economy. In this regard, it is worth highlighting the recent launch of the ICO's first green bond issue amounting to 500 million euros, which will be used to finance activities, investments and projects by Spanish companies that contribute to environmental protection and the fight against climate change.
Also noteworthy is the new initiative launched by AXIS in 2019, with a target amount of 50 million euros and within the framework of Fond-ICO Pyme, to invest in Sustainability and Social Impact Funds, an area in which the public sector clearly has a leadership responsibility.
In addition, it is important to mention the alliance with EIF in the field of business angels, which has allowed the recent launch of the second support fund for start-ups (Business Angels Fund - EAF Spain II) with an allocation of 40 million euros.
In addition to being a leading issuer and catalyst for the transition of the financial and venture capital sector towards sustainable economic development, the ICO promotes sustainability as a backbone and transversal axis in all its facets and as an essential part of Corporate Social Responsibility policies.
AXIS is the venture capital company wholly owned by ICO. It has been operating in the venture capital market for over 30 years and provides companies with equity and quasi-equity tools to finance their growth. AXIS currently manages three funds: Fond-ICO PYME -which offers long-term support to companies in their expansion and growth plans, through direct investment, co-investment with other professional investors or indirectly through funds-, Fond-ICO Global -the fund of private venture capital funds that primarily invests in Spanish companies, at all stages of development-, and Fond-ICO Infraestructuras -whose main objective is to make investments in transport, energy and environmental infrastructures and social infrastructure-.