Octopus Renewables Infrastructure Trust (ORIT) has signed a new five-year term loan facility with three of its existing lenders.
The £100m facility will be used to pay down a portion of the existing and more expensive Revolving Credit Facility (RCF) debt.
The facility comprises equal commitments from Santander, National Australia Bank and Allied Irish Banks and is secured against ORIT’s UK onshore wind and solar assets.
ORIT has secured an all-in hedged interest rate of 5.3%, representing a material decrease in costs from the existing RCF, which has an all-in rate of approximately 6.5%.
The company has so far drawn £151.2m on the RCF, a portion of which will be paid down using the net proceeds from the facility, reducing the drawn amount to around £53m.
ORIT chair Phil Austin (pictured) said: “This new facility demonstrates ORIT’s ongoing commitment to reducing overall debt costs, enabled by the attractive terms secured by the investment manager against the high level of fixed revenue from these UK assets.
“The company continues to examine further measures it can take to reduce costs and drive value for shareholders.”