The SUSI Energy Efficiency Fund (SEEF) has financed another transaction with the ESCO Gemmo S.p.A. providing energy efficient lighting for five major Italian municipalities.
The nominal value of receivables amounts to over €17 million (US$19 million) and marks SEEF’s seventh financing transaction of lighting retrofits across Europe within a year.
With this transaction, which was closed on October 26, 2016, the SEEF stepped in as financing partner for an energy saving contract between Gemmo as energy service company and the municipalities of Pisa, Olbia, Viterbo, Domodossola and Terracina about the retrofitting of over 40,000 street lighting points.
Under the contract, Gemmo will substitute and upgrade the existing public lighting into an energy efficient lighting system. This will allow the municipalities to save around 19 GWh in annual energy consumption, corresponding to approx. €3 million under the current electricity price, and leading to significant reductions of the five municipalities’ ecological footprint. The transaction was supported by the law firm DLA Piper Italy.
The SEEF is the leading independent investment vehicle financing energy efficiency projects in Europe. The SUSI Energy Efficiency AG, a subsidiary of SUSI Partners AG, advises the fund on investments in private, industrial and public large scale infrastructure.
Stefano Fissolo, Vice President and transaction manager at SUSI Energy Efficiency AG, comments:
“With this transaction we strengthen our relationship with a very important partner and we continue to invest in the Italian LED street lighting, one of the most beneficial applications of the ESCO model in Europe. Moreover, the off-balance sheet treatment of the SUSI Energy Efficiency Fund financing proves to be an appealing proposition for the ESCOs that can outsource the credit risk of the public entities, can recover the project Capex upfront and improve their balance sheet ratios.”
Otto von Troschke, CIO of SUSI Partners on the transaction:
“The follow-up transaction with Gemmo brings our total commitments to LED retrofits in public and private infrastructure throughout Europe to €70 million within the past twelve months and therefore further strengthen our position as a leading financier in this area.”
Francesco Ortolani, CEO of Gemmo S.p.A., comments:
"We are excited to extend our successful cooperation with SUSI, allowing us to further expand our activities in this strategically important market for Gemmo."