Three Hills Capital Partners injects €30 million in Building Energy

An agreement has been signed between Building Energy and the pan-European fund Three Hills Capital Partners for the underwriting of a bond totalling €30 million. The bond is listed on the MTF, which is managed by the Borsa Italiana in the professional segment ExtraMot Pro.

The issuing of the bond is to be structured with support from Intermonte SIM, and is expected to be paid back after five years from the time of issuance. The international fund, which is specialised in partnering with successful management teams in their growth projects, will also have a non-controlling interest in the group.

The entire investment will be used to support a strategic industrial plan that in the next two years foresees the construction of plants for producing energy from renewable sources. This is to take place on a global scale for a total of more than 430 MW to be in operation starting in the year 2017.

Fabrizio Zago, CEO of Building Energy, said:

“Obtaining these new resources will help grow the company’s financial flexibility and help speed up growth in the United States, South Africa and Eastern Europe, markets where the company is present with numerous plants that are currently being developed and built. We have recently won out in international competitions for the creation of one of the largest biomass plants in Africa with a capacity of 16 MW, a 140 MW wind farm, a mini hydroelectric plant with a capacity of 4,7 MW in South Africa and the first photovoltaic park in Uganda, which will have a capacity of 10 MW. In the next few weeks, construction will begin on a 30 MW wind farm in Iowa, on the second phase of a solar plant at Cornell University in the state of New York, as well as on a 45 MW solar plant in Panama. These projects are part of Building Energy’s development pipeline, which today has projects with a total capacity of more than 2,200 MW.”

Mauro Moretti, founder of Three Hills Capital Partners, said:

“The investment in Building Energy testifies to Three Hills Capital Partners’ focus on finding and supporting success stories led by ambitious management teams with a great desire for international development. We are determined to support Fabrizio Zago’s vision and his team. In the last few years, they have been able to come up with an integrated and unique business model for the renewable energy market, with a strong focus on emerging markets and the United States.”

The operation was carried out by Intermonte and PwC and supported by the legal advisor Studio Chiomenti on behalf of Building Energy, while Linklaters and Clifford Chance on behalf of Three Hills Capital Partners.