Amarenco’s president, Alain Desvigne, said the group’s strengthened balance sheet will enable it to pursue acquisitions and mergers.
UK-based Arjun initially invested in Amarenco in 2022. It took a 30pc stake in the business as part of a funding round that saw the Irish firm raise €300m to further develop the business.
Other backers in Amarenco include Credit Agricole and Paris-based Tikehau Capital.
In January, Amarenco closed a €300m junior financing platform arranged by Eiffel Investment Group, which provided an initial €150m commitment. That deal refinanced Amarenco’s existing junior debt facilities.
Amarenco, founded by the late John Mullins, focuses on solar energy and battery storage projects in countries including Ireland, France, Spain and Portugal.
It invests more than €500m a year in projects and currently employs over 200 people across Europe. Last year, the company reached 650 MW of installed solar capacity.
It owns a number of solar energy farms in Ireland, many of them in the southern part of the country.
The company said the latest deal with Arjun Infrastructure Partners is structured in two stages, with a second tranche planned for later this year, with the support of BNP Paribas. Amarenco said the deal will bring it “closer to its tipping point toward financial autonomy” within 24 months.
The energy firm said it is modelling that by then, operating cash flows will cover all of its fixed, operating and financial expenses.
“It is based on exceeding the threshold of 1 terrawatt hours of annual production, backed by more than 1 GW of installed capacity,” according to the group.
It said it would then be generating recurring Ebitda (earnings before interest, tax, depreciation and amortisation) from electricity production and asset turnover.
“The paradigm shift currently reshaping the energy industry will inevitably accelerate consolidation across the sector,” said Mr Desvigne.
“By strengthening our balance sheet, we are moving from a purely organic growth strategy to an active consolidation capability,” he added. “Amarenco is therefore well positioned to seize strategic acquisition and merger opportunities to strengthen its market positions,” he said.
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