Australian manager IFM Investors has lent £28 million ($40 million; €36 million) to help Platina Energy Partners refinance Danu II, a portfolio of UK onshore wind farms.
The long-term floating rate loan was sourced from two US insurance companies which have existing debt mandates with IFM. In addition to its debt mandates, the Melbourne-based manager has recently launched its first US-focused pooled debt fund.
Platina explained the refinancing increased the gearing and the maturity of Danu II’s senior debt, with the new debt maturity actually exceeding the portfolio's underlying power offtake and operating and management agreements.
Lloyds Bank provided interest rate swaps and transaction banking services, with Platina saying it “novated the swaps to a new counterparty with no payment from Danu II to novate the swaps”. Danu II comprises two 14MW operational onshore wind farms built in 2009.
Platina hinted it might close similar deals in the future, stating that it “will continue to diversify its sources of financing and facilitate [deals] for institutional investors to benefit from the stable cashflows generated by renewable projects”. The firm has some €500 million of equity under management and over 540MW of wind and solar projects across Europe.