Energean Secures Up to €160 Million Investment from The Phoenix for Romanian Expansion

Energean is deepening its collaboration with The Phoenix Group, bringing in up to €160 million in financing for its primary operations in Romania. Under the agreement, Energean will establish a new holding company, HoldCo, which will house its Romanian project portfolio. The Phoenix Group will provide the investment in exchange for redeemable preferred shares in HoldCo, with Energean UK retaining full ownership of HoldCo.

Of the €160 million facility, HoldCo is committed to drawing €130 million within the first 12 months post-deal completion, with an option to draw an additional €30 million over the subsequent 18 months. The preferred shares will carry an initial annual coupon of 8.5% on the invested amount in euros. If the coupon is not paid, it will accrue to the principal, and the coupon rate will gradually increase to 9.5%, 10.5%, and finally 11.5% at specified intervals if the shares remain unredeemed.

In addition to the financing for its Romanian activities, The Phoenix Group will receive 1.392 million options to purchase an equal number of Energean shares at an exercise price of NIS 77.5 per share, exercisable over 24 months. Concurrently, The Phoenix Group is investing an additional €43 million under a prior 2023 investment agreement, which was extended in early 2025 and commits The Phoenix Group to a total investment of €225 million. Approximately €38 million of this new tranche is earmarked for adding battery energy storage systems (BESS) to eight of Energean's photovoltaic projects in Romania.

Romania has become a key market for Energean, with the company holding 743 megawatts (MW) of connected or ready-to-connect projects and an additional 861 MW under construction. The new financing aims to support the continued development and construction of its Romanian project pipeline while restructuring the ownership and financing of its operations in the country. Energean co-founder and CEO, Yiannis Papadopoulos, expressed satisfaction with the expanded partnership, viewing it as a significant vote of confidence in Energean's growth strategy and its Romanian portfolio's potential.