Solar marketplace Otovo agrees doubling of debt facility to EUR 100m

A fully-owned unit of Otovo ASA, an online marketplace for solar installations based in Norway, has received credit approval from a trio of lenders for an extension of its credit line from EUR 50 million (USD 54m) to EUR 100 million.

The subsidiary, called European Distributed Energy Assets Midco AS (EDEA), got the credit approval from DNB Bank ASA, Sparebank1 SR-Bank ASA and Export Finance Norway, also known as Eksfin. The latter has agreed and credit approved to guarantee a EUR-37.5-million portion of the entire facility.

Otovo noted that the additional money will allow it to grow its subscription portfolio to 12,500 solar-powered homes.

As part of the agreement, the banks will increase the leverage for exposures in Austria, Switzerland, the Netherlands and Belgium from 60% to 75% as measured towards ticket size. The weighted average debt ratio of EDEA is seen to rise between two and four percentage points, depending on the development in the country mix of the subscription portfolio.

“The expanded credit facility with its increased leverage will enable thousands of new home-owners across Europe to go solar and benefit from the record low solar prices we are now experiencing,” said Andreas Thorsheim, CEO and founder of Otovo.

(EUR 1.0 = USD 1.082)

Choose your newsletter by Renewables Now. Join for free!