Capital Stage clinches £40m from institutional investor

The listed notes were placed with Legal & General Investment Management and will help finance a 54.4MW UK solar portfolio.

Hamburg-listed solar and wind park operator Capital Stage continues to capitalise on institutional investor funds to finance its acquisitions, having just secured £40 million (€54 million; $61 million) in listed notes to fund a 53.4MW UK solar park portfolio acquired in February.

The debt is being placed with the infrastructure division of Legal & General Investment Management, on behalf of an undisclosed third-party institutional investor. It will be used to refinance the construction facility that was in place for the solar parks. IDCM helped structure and place the notes.

“The possibility to finance the debt capital portion of our UK solar park through the issue of long-term listed notes at favourable conditions greatly expands our financing options. In addition, we benefit from the currently highly attractive market conditions,” said Capital Stage chief executive Felix Goedhart.

Recently, Capital Stage used quasi-equity from a €150 million pool of capital provided by German insurer Gothaer to buy a 5MW solar park, also in the UK.

For insurance and pension provider Legal & General, the solar deal represents an opening up of its infrastructure business to outside investors. “We are now pleased to have opened this up for external clients and are currently investigating a number of other attractive infrastructure investments on behalf of our clients,” said head of infrastructure Silja Turville.

IDCM said the deal means it has now executed about £300 million of long-term debt financing for UK solar.

This article was first published on Low Carbon Energy Investor.