UK-based investment vehicle NextEnergy Solar Fund has secured a £150 million ($186.8 million; €174.2 million) refinancing facility for a 241MW portfolio.
The funds were secured from an all-Australian consortium comprising Macquarie Infrastructure Debt Investment Solutions (MIDIS), National Australia Bank and Commonwealth Bank of Australia. They will be used to refinance 21 of NESF’s total portfolio of 38 projects.
The facility was provided in three tranches of £48 million, £39million and £63 million that mature in 2035, at the end of the projects’ life cycle. It is comprised of both fixed-rate and inflation-linked debt.
“The new facility improves our near-term cash flow generation materially and the expected cash dividend cover, whilst maintaining a conservative level of gearing in line with our stated strategy,” said NESF chairman Kevin Lyon.
He added that the vehicle is “in advanced negotiations” surrounding the potential acquisition of another 197MW worth around £205 million. NESF said at the end of October that it was in talks for a pipeline of 560MW, some 130MW of which at that point had reached the letter of intent stage.
The fund’s current 38-plant portfolio has a total capacity of 439MW. Following the latest refinancing, its debt totals £270.2 million, with other existing facilities in place provided by MIDIS, Bayerische Landesbank and NIBC.