Macquarie debt fund backs CapDyn wind portfolio

The Australian asset manager has provided a £60m, 18-year loan structure to the Swiss-based firm shortly after sealing a £579m first close on its UK inflation-linked debt vehicle.

Macquarie Infrastructure Debt Investment Solutions (MIDIS), the infrastructure debt arm of Sydney-based Macquarie, has injected £60 million (€76 million; $96 million) of liquidity into a portfolio of seven onshore wind farms in the UK.

The amortising facility allows Swiss-based fund manager Capital Dynamics, the assets’ owner, to recycle equity across the 55-megawatt (MW) portfolio. The package comprises a combination of Retail Price Index (RPI)-linked and nominal debt with a tenure of 18 years.

“With an evolving financing landscape, assets such as wind power generators need alternative ways to access secure long term funding. MIDIS offered an innovative structure allowing us to match our revenue streams and interest costs, as well as access a delayed drawdown facility to help us manage the financing of different projects within the portfolio,” said Rory Quinlan, managing director at Capital Dynamics, in a statement.

Renewables were one of sub-asset classes identified by Macquarie as major targets when it set out to raise its debut UK inflation-linked debt vehicle last March. The firm, which foresees a £2 billion annual deal pipeline in the sector out of a £4 billion total, reached a £579 million first close on the fund at the beginning of the month.

“Onshore wind is one of the most established renewable technologies and we anticipate increasing interest from renewable energy businesses looking for loan structures to match their cash flow inflation profile,” said Kit Hamilton, senior vice-president at MIDIS.

As at December 1, Macquarie’s UK inflation-linked overall infrastructure debt strategy, which comprises the vehicle as well as separate managed accounts, had raised commitments from 11 institutional investors totalling £979 million. The firm expects to reach the £1.25 billion mark for the platform during Q2 2015.