K&H Bank, the Hungarian unit of Belgium’s KBC Group, and Dutch Photon Energy signed a 15-year project financing agreement for the company’s photovoltaic power plant portfolio in Hungary.
The long-term non-recourse project financing agreement was signed for Photon Energy’s 11.5 MWp proprietary PV power plant portfolio in Hungary.
The portfolio is comprised of 17 individual KÁT-licensed PV power plants in three different locations.
The 0.5 MWp project in Fertőd was grid-connected in March 2018, eight projects in Tiszakécske with a combined capacity of 5.5 MWp in December 2018, and additional eight projects in Almásfüzitő with a total capacity of 5.5 MWp are expected to be connected by the end of January 2019.
Financing amounting to HUF 3.33 billion (EUR 10.4 million) is being provided by K&H Bank, the Hungarian subsidiary of Belgian KBC Group N.V. and one of Hungary’s largest banking and financial services firms as well as a leading local player in project finance, for a period of 15 years.
We have built and pre-financed the power plants with the proceeds of our last year's EUR bond placement. The refinancing with K&H Bank is a major step in our strategy for the Hungarian market to build at least 50 MWp of PV power plants for our portfolio until the end of 2020
, said Clemens Wohlmuth, CFO of Photon Energy.
He added that this step allows the company to free up significant liquidity again and to build further projects in Hungary this year.
Photon Energy delivered the engineering, procurement and construction services for all power plants through its subsidiary Photon Energy Solutions HU Kft. The Group’s subsidiary Photon Energy Operations HU Kft will provide long-term monitoring as well as operations and maintenance services to the power plants.
Business activity in PV projects leaped over the last two years. The Hungarian Energy and Public Utility Authority (MEKH) reviewed 65 mandatory off-take regime (KÁT) licence requests in 2015, while by the end of December 2016 it received requests for 2,000 MWp capacity, half of which is expected to become realised, according to the market.