AES Solar Energy Closes Financing for 8 MW Photovoltaic Project in Italy

AES Solar Energy Ltd (AES Solar), a joint venture between the AES Corporation (NYSE: AES) and Riverstone Holdings LLC, announced  that one of its subsidiaries closed on long-term non-recourse financing facilities of €31 million to finance the construction of the 8 MW Torchiarolo solar photovoltaic (PV) facility project, located in the Puglia region of Italy.

David Sundstrom, AES Solar Country Manager for Italy stated, “Reaching financial close on the 8 MW Torchiarolo project, our second solar PV project in Italy this year, demonstrates AES Solar’s strong capabilities in project finance and development. We appreciate the continued support of lenders as we move forward to develop our pipeline of PV projects under Italy’s feed-in tariff structure.”

Two banks participated in this financing: UniCredit Mediocredito Centrale (as Agent) and Centrobanca – Banca di Credito Finanziario e Mobiliare. The facilities cover approximately 85 percent of estimated project costs at completion, and the final maturity date is 18 years post construction.

The 8 MW Torchiarolo project is expected to reach commercial operation by the end of 2010, which will qualify it for a 20-year regulated feed-in tariff under the “Conto Energia” scheme. Global Energy Services Italia is constructing the project.

AES Solar currently has a global operating portfolio of 37 MW in France, Greece and Spain, and with the addition of the Torchiarolo project, has a total of 51 MW of projects under construction. AES Solar is on track to have 88 MW in operation by the end of 2010.