TERNIENERGIA AND POWER CAPITAL: signed a framework agreement  for the development of the project  “RA” Renewable Assets

for the structuring  of a real estate fund specialized in renewable energies  reserved to qualified investors

 

  • The agreement has been presented in a press conference in Borsa Italiana by Stefano Neri, President of  TerniEnergia, and Nicola Romito, President of the advisor company  Power Capital
  • The fund will represent  a new investment tool with replicability features in a rapidly expanding sector
  • Expected capital raising between  Euro 50 and 100 million
  • The  fund will have a duration of twenty year  and TerniEnergia will participate directly through the transfer of assets represented by plants producing energy from photovoltaic and biomass systems
  • Planned new development projects in the most attractive Countries for the growth in this  sector

 

 TerniEnergia, company active in the  renewable energy fields, energy efficiency and waste management,  listed on the Star segment of Borsa Italiana, and Power Capital, a consulting company for investment, have signed a framework agreement for the development of the project called “RA”, Renewable assets, aimed at structuring an Italian  close-ended investment fund, involving real estate, to qualified investors, with the contribution of real estate and cash payments. The agreement was presented today to the business and financial community and to  the press at the headquarters of Borsa Italiana.

In particular, the fund shall be specialized in the production of energy from renewable sources and in the green industry, proposing itself  to represent a new investment instrument in a  rapidly expanding sector. Objective of the operation will be to increase in a long-term time horizon the invested amount, through cash flows generated steadily by the operation of industrial plants.

Stefano Neri, Chairman and Ceo of TerniEnergia, commented as follows:

“RA” project will create a first real estate investment fund, totally independent, where TerniEnergia  will be at the same time strategic partner for the activity of system integrator and industrial management of energy production plants. The company has also foreseen its own investment in the fund, giving some assets represented by photovoltaic systems and biomass. This will allow access to capital that will ensure the development of new industrial projects and a new growing season. TerniEnergia wants to maintain its high standards of industrial quality and generate new activities in the supply chain, with high technological content. Thanks to the “RA” project  we are confident of being able to strengthen the internationalization process of the Group’s business, in very interesting sectors and in countries with most attractive characteristics  also  to  institutional investors, who then will  have the opportunity to take significant returns by contributing, at the same time, to the affirmation of the green Italian industry in the world. TerniEnergia will then complete a further evolution of its business mission, from  system integrator and owner of plants to  asset manager and promoter of new industrial plants capable of imparting a substantial boost to a renewed growth path”

Nicola Romito, Chairman of  Power Capital, stated as follows:

The “RA” project , in our intentions, will have a threefold function of service: to the country, for the achievement of the objectives set at the supranational level regarding the use of renewable sources for energy production, energy efficiency and reduction of emissions CO2;  to qualified investors, who will have the availability of  a new asset class to diversify the portfolio and allocate long-term investments with the best risk-return profile; to the industry,  which we intend to foster in its development and growth in a difficult phase of  access to credit, with a sustainable use of financial leverage. In this sense, we have the conviction to promote a virtuous cycle for finance, that abandoning the more speculative prerogatives, will retrieve that function able to support real growth. The tool of the real estate fund, will finally  ensure transparency, effectiveness and accountability in the relationship between supply and demand investment, through a structure of access to the capital market more efficient compared to the traditional banking intermediation”.

The fund will have a structure, a duration of twenty years and will guide investment choices towards an asset class, that of plants producing energy from renewable sources, a constant and high cash generation, with a cycle of investment and adjustment regime shorter than the traditional real estate development. The “RA” project expected risk-adjusted, adequate, predictable returns and tenuously linked to the  performance of financial markets, more than 10% in terms of IRR. The  advantages include  a better taxation than the special purpose vehicle where normally listed companies or private equity funds occur. Finally, the fund will ensure full transparency and independence, as supervised party, segregated capital base, and with a better  credit rating than a vehicle company.

According to the project, TerniEnergia will be the concessionaire company of the operational  production and distribution of energy risks,  maximizing  the predictability of future cash flows, thanks also to the operating and insurance policies. The company will also be the strategic partner of the fund for the EPC activity, for the development of projects and for the construction of plants, with the turnkey formula  through EPC contracts  at market prices. Together with the Power  Capital Advisor, TerniEnergia will  evaluate and propose new projects to the SGR in Italy and abroad for the construction of plants, including high-power plants.

Power Capital, a company of professionals with proven experience and recognized track record in asset management, will  act as advisor  also for the fund’s  structure, enhancing its expertise in the assessment  and implementation of investment projects related to property. Raising capital is expected between Euro 50 and 100 million.

In the coming weeks will be completed transparent selection procedure of SGR, which according to  the project will carry out all the activities typical of a Savings  Management Company , through the procedures of establishment, promotion, management of the real estate fund.