Octopus Investments has completed £174m refinancing of a 172MW biomass and landfill gas portfolio in the UK.
The refinancing of the Melton Renewable Energy UK portfolio consists of a £152m term loan, £10m revolving credit and £12m debt service reserve facility.
Funding came from National Westminster Bank, HSBC UK Bank, AIB Group, Investec Bank, Barclays Bank and Banco de Sabadell.
Octopus acquired the portfolio – comprising five biomass plants and 22 landfill gas sites – on behalf of its investors in 2015.
Octopus head of energy investments Matt Setchell said: “Following our record breaking solar refinancing last year, once again the Octopus team has delivered another significant transaction with this funding package for the biomass and landfill portfolio that we manage.
“The involvement of major bluechip lenders in the deal highlights the confidence in the future of biomass in this country.”
Melton Renewable Energy chief executive Eddie Wilkinson said: “Completion of this transaction marks another significant milestone for the business which continues to go from strength to strength.
“This represents a positive step and is testament to the operational team which continues to deliver outstanding performance, dealing with vast quantities of agricultural residues and making a significant contribution to the UK’s renewable energy sector.”
Linklaters was legal counsel and Natwest Structured Finance financial advisor for Octopus and Melton Renewable on the refinancing deal.
Meanwhile, Octopus said it generated 155 gigawatt-hours of electricity from its solar assets in the UK in the 30 days to 22 July, 19% higher than expectations.
Setchell said: “You often hear of record national outputs from wind farms based on our much loved British climate, but the same can be said for UK solar power during sunny spells like the one we are currently enjoying.
“This is a perfect example of how important it is to develop a truly diversified energy mix, to ensure we maximise all our natural resources at any given time.”
Image: sxc
Octopus refinances UK bio
By EBS