Ireland-headquartered renewables producer Alternus Energy has signed a deal with Deutsche Bank for a project financing facility of up to €500 million (~$532.3 million).

An initial draw of €80 million (~$85.1 million) has also been approved. The company will use the proceeds to acquire solar photovoltaic assets, both operating and under-construction projects, in Europe.

The company said it will also use the capital to finance the construction of up to 600 MW of the development pipeline on a revolving basis, bolstering Alternus’s planned growth strategy through 2025. It will also support the closure of the company’s current contracted acquisitions.

Deutsche Bank will also serve as lead arranger in the syndication of the remaining facility as and when projects are submitted for approval.

The facility will help Alternus expand its current annual recurring revenues to over €200 million (~$212.9 million) by the end of 2025 from approximately €30 million (~$31.9 million) currently.

The company’s operational portfolio of solar assets spread across five European countries currently provides an attractive long-term recurring cash flow generation with ~€400 million (~$425.9 million) lifetime revenues, of which ~€172 million (~$183.1 million) is already contracted.

Alternus Group’s CEO Vincent Browne said, “This facility will support development projects and provide construction finance across multiple European jurisdictions. Securing this facility will allow us to accelerate our growth initiatives over the next few years. Deutsche Bank is an ideal partner as they share our vision of combatting climate change through the delivery of clean energy assets while maximizing stakeholder benefits in the process.”

Earlier this year, Alternus Energy established its clean energy development business, Altnua, aiming to extend its operations as a renewable asset developer across Europe and the United States.

In April this year, the company agreed to acquire up to 228 MW of solar projects in ready-to-build status in Spain.