Filenews 29 August 2023
ADMIE reached a preliminary agreement with an Israeli fund for its entry into the share capital of Euroasia Interconnector, the operator of the Crete-Cyprus interconnection, with a stake of up to 33%, according to the Non paper obtained by Insider.
Specifically, the Non paper mentions that this development on the one hand confirms the increased interest shown recently by Israel in the project, and on the other hand provides a solution to the funding gap that existed and called into question the smooth development of the project. This is because the participation of IPTO and the Israeli fund in Euroasia Interconnector creates the necessary conditions (sufficient share capital) for the loan of the project by the European Investment Bank and for the completion of its financing architecture.
The planned participation of the Hellenic Transmission System Operator in the project with at least 25% (on the basis of the Letter of Intent signed with Euroasia Interconnector) and with an option of further increase to 33% was the guarantee to convince Israeli investors to enter the project, taking into account -among other things- IPTO's know-how in electricity interconnection projects.
The agreement of the Operator with the Israeli Fund is "equivalent" to that concluded by IPTO with Euroasia Interconnector as reflected in the Letter of Intent. It is the culmination of the intense mobility developed by both the Manager and the shareholders of the implementing body, who were recently in discussions in search of potential investors. ADMIE informed the shareholders of Euroasia Interconnector about this possibility of expanding the shareholder base and about the next steps required in order to timely complete the necessary shareholder agreements.
In this context, it is noted that, on the basis of the contract recently signed by Euroasia Interconnector with the Norwegian company Nexans for the construction of the cable section of the Crete-Cyprus interconnection, the first milestone – concerning the payment of €50 million – expires on September 7.
The entry of the Cypriot State is also important
Finally, it is noted that for ADMIE, the envisaged entry of the Cypriot State into the share capital of EuroAsia Interconnector is also in the interest of the project – as it will further improve its financing conditions – and could create even better conditions for the start of the construction of the interconnection that will remove the electrical isolation of Cyprus.
