The project owner points out the following special features in the design of the project:

Partnership with a mayor European Utility:

In 2024, Ongresso Energy entered a partnership with a mayor European Utility: in the 50/50 joint venture “Brillo Renovables”, both partners jointly develop, implement, and operate distributed energy and self-generation C&I solar energy assets in Colombia. Both companies take on operational roles in all processes and contribute 50% of the investments each. 

Power Purchase Agreement (PPA):

A 17-year power purchase agreement (PPA) is in place between the project company and Veolia A 17-year power purchase agreement (PPA) is in place between the project company and Veolia, a publicly listed multinational company with investment-grade credit ratings from Moody’s and S&P (Baa1 and BBB, respectively, both with Stable outlooks).

The PPA provides for fixed, take-or-pay pricing indexed to local inflation.

Reduced exchange rate risk:

As an additional risk-mitigating measure, financing is intended to be provided through a local development bank in Colombian pesos (COP). This reduces the exchange rate risk through a natural hedge between financing and project revenues and contributes to greater financial stability of the project.

Investment Requirement

With the loan of €100,000 the Swiss company Ongresso Energy finances the project company “Brillo Renovables” – a 50/50 joint venture between Ongresso Energy and a mayor European Utility – in the form of a shareholder loan. The project company is responsible for the development, construction, ownership, and operation of solar photovoltaic energy plants in Colombia.

The term of the loan is 4 years and has an annual interest rate of up to 7.50% p.a. for the crowd investors. 

All investors who invest within the first 3 weeks will receive an Early-Bird bonus of 0.5% p.a. The interest rate thus increases from up to 7.50% to a total of up to 8.00% p.a.

The funding threshold for this project is €50,000. If the funding target is not reached, but at least the funding threshold is met, the project owner will still use the investor funds to finance the project company, albeit to a reduced extent.

Interest payment 

The investor receives an annual interest payment of up to 8.00% p.a. on the outstanding subordinated loan amount, starting from the beginning of the regular interest period. Interest payments are due annually in arrears, with the first payment due 12 months after the start of the regular interest period and the final payment due at the end of the loan term. The amount of the yearly interest payments is detailed in the subordinated loan terms as part of the interest and repayment schedule.  

Repayment

Repayment of the subordinated loan is subject to qualified subordination and the pre-insolvency enforcement block and takes place in the amount of the invested loan capital. Repayment is due at maturity, i.e., in a single payment at the end of the term. The detailed repayment schedule is attached to the terms and conditions of the subordinated loan as an interest and repayment schedule.

The repayment of the loan is made from liquid funds that Ongresso Energy receives from the repayment of the shareholder loan by Brillo Renovables. Brillo Renovables in turn generates revenues through the sale of the electricity produced to the client Veolia.