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PHOTON ENERGY INVESTMENTS N.V.: European investment protected solar aggregation Yield-Co launched to IPO in 2015

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PV Power Plant (Photo: Photon Energy)

Amsterdam (pta013/20.02.2014/11:15 UTC+1) Photon Energy Investments is announcing the launch of Pan-European Solar Asset Aggregation Yield-Co "European Solar Holdings", combining effective investment protection and efficient asset management with a liquid public listing and an attractive dividend yield. ESH's key element is an effective protection platform for all investors in EU solar assets against future retroactive measures. Once a target portfolio size of 250 MWp will be reached European Solar Holdings will seek an IPO in 2015 and aims to own-operate 1 GWp of PV assets by 2017.

Photon Energy Investments, a subsidiary of global solar energy solutions and services provider Photon Energy NV (Warsaw SE: PEN), announces the launch of European Solar Holdings NV (ESH), a Pan-European Solar Asset Aggregation Yield-Co with the strongest possible investment protection currently available. ESH intends to establish itself as the preferred vehicle for yield-seeking investors into renewable energy assets in the European Union by combining effective investment protection and efficient asset management with a liquid public listing and an attractive dividend yield. Investors operating PV power plants in the EU will be able to swap their investments for shares in ESH, which aims to IPO on a major European exchange in 2015.

Effective protection for investors against further retroactive measures
ESH's investment protection is based on experience gained in arbitration proceedings brought against Spain and the Czech Republic and the expected cancellation of Bilateral Investment Treaties (BIT) between EU member states. The key element is the aggregation of the largest possible volume of PV assets under the strongest available BIT with a safe non-EU country. Given the substantial cost of international arbitration, economies of scale are crucial. Therefore, ESH will offer all investors in PV power plants across the EU access to its defence platform.

Devastating retroactive tax and regulatory changes aimed at PV investors across the EU - most notably Spain, Greece, the Czech Republic, Bulgaria and now even Italy - are spreading fast. "With no real recourse to national courts, a cynically unhelpful EU Commission and the toothless Energy Charter Treaty investors have become free-for-all sitting ducks", says Georg Hotar, CEO of Photon Energy. Each new outrageous measure by an EU member state against bona-fide investors appears to be inspiring the next attack in another country. "The high fragmentation of ownership and paper-tiger industry groups have rendered investors' defence very weak. As investors in this fundamentally attractive asset class we can either sit and pray or we can improve our defences and fight back", Hotar explains.

"No responsible and prudent investor with existing exposure to PV or other renewable energy assets in the EU, let alone investors considering new investments into this asset class, can afford ignoring the risk of retroactive tax and regulatory measures. This risk extends to all jurisdictions in the EU, including Germany, France and the UK". For increasingly desperate governments taking money from a relatively small number of defenceless investors appears too good an opportunity to pass. "The most recent final dismantling of the support mechanism in Spain and the consequential slaughter of equity investors and financing banks serves as the most relevant real-life example of things to come", warns CEO Georg Hotar.

Further advantages: optimal asset performance, efficient project debt financing and dividends
The benefits of PV asset aggregation captured by ESH for its investors will extend beyond effective investment protection. Photon Energy's capabilities as a full-service O&M provider through its subsidiary Photon Energy Operations with its NPVmax approach will optimise the risk/return profile of ESH's portfolio. ESH's growing portfolio will provide crucial economies of scale for portfolio-level debt financing, opening alternatives to local bank financing in the form of access to debt capital markets to optimize the capital structure and cost of capital, maximizing the portfolio ROE.

As the founding sponsor PEI intends to contribute its 26 MWp of grid-connected PV power plants in the Czech Republic, Slovakia and Italy to ESH. The target portfolio size for the IPO is 250 MWp and the long-term objective is to aggregate a 1 GWp portfolio by 2017.

For more information about European Solar Holdings NV please visit http://www.europeansolarholdings.com

MEDIA CONTACT
Jan Krcmar
T +420 773 032 182
E jan.krcmar@photonenergy.com

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Emitter: PHOTON ENERGY INVESTMENTS N.V.
Barbara Strozzilaan 201
1083 HN Amsterdam
Netherlands
Contact Person: Jan Krcmar
Phone: +420 277 002 910
E-Mail: jan.krcmar@photonenergy.com
Website: www.photonenergyinvestments.com
ISIN(s): DE000A1HELE2 (Bond)
Stock Exchange(s): Free Market in Berlin, Frankfurt, Hamburg, Hannover; Vienna Stock Exchange (Corporates Prime)
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