John Laing environmental fund secures £50m facility

The London-listed fund will use the money to make acquisitions of environmental infrastructure projects to add to its current portfolio.

John Laing Environmental Assets Group (JLEN) has secured a three-year revolving credit facility of £50 million (€63 million; $80 million) with HSBC and NIBC, according to a statement.

The credit facility is expected to give the London-listed green fund a flexible source of funding outside of equity raisings, it said.

The money will be used to make acquisitions of environmental infrastructure projects to add to its current portfolio of wind, solar, waste and waste water processing assets and to cover working capital requirements, the statement said.

Borrowing under the facility will repaid through cash received from its investment assets and future equity raisings.

The facility margin is 250 basis points over LIBOR. Under its borrowing limit policy, JLEN may borrow up to 30 percent of its net asset value, it added.

Richard Morse, JLEN chairman, said the credit facility is “in line with” the fund’s intentions set out at the time of its initial public offering (IPO) on the London Stock Exchange.

“It is a useful tool to allow the fund to act swiftly to make bids for suitable assets in the active secondary environmental infrastructure market and it will support the fund’s growth over the next three years,” Morse said in the statement.

One month after its IPO on the London Stock Exchange in March, the green fund made its first investments through two acquisitions for a total value of £43.1 million.

In April, it bought Dumfries & Galloway Waste project and the Hall Farm Wind project from John Laing Group, and also completed the purchase of the Tay Wastewater project from Henderson Secondary PFI fund, according to its website.