Ellomay Capital (ELLO) said Wednesday that it entered into a 52 million euro ($57.4 million) investment agreement with Clal Insurance and its affiliates to fund solar projects in Italy.

Under the agreement, Ellomay and Clal will invest in a new Israeli limited partnership, where Ellomay will hold 51% and Clal 49% with a right of first look at future solar projects in Italy, according to Ellomay.

The company said the partnership will own a Luxembourg entity that will hold Ellomay's Luxembourg unit's shares in seven Italian solar companies with a total capacity of about 198 megawatts.

The Italian solar portfolio consists of operating solar facilities with an aggregate capacity of 38 MW connected to the grid, and additional solar facilities with an aggregate capacity of 160 MW that have reached ready-to-build status, the company said.

Ellomay said it will also sign a partners agreement with Clal and issue a warrant to Clal for 416,000 shares at an exercise price of 69.7 New Israel shekel per share, with a term of 26 months.