Foresight secures £200m

Foresight Solar Fund has closed deals totalling £200m to help finance further acquisitions to its project portfolio.

The fund has reached financial close on a £160m in long-term debt to refinance its £150m short-term acquisition facility currently in place. 

A further £40m has been secured in a revolving acquisition facility.

Macquarie Infrastructure Debt Investment Solutions (Midis) and Abbey National Treasury Services – trading as Santander Global Corporate Banking – are providing the facilities.

Macquarie has provided tranches of fixed rate and index-linked debt amortising over 18.5 years, while Santander has provided a term loan amortising over eight years, as well as the £40m revolving acquisition facility.

Foresight was advised by Osborne Clarke on the financing.  The lenders were advised by Ashurst and Fichtner.

Foresight has also sealed a five-year power purchase agreement for 15 of its 16 solar assets with one unnamed company.

The deal follows a tender process, the company said.

Foresight chairman Alex Ohlsson said: “Given the current favourable market conditions, we believe the facility has been secured at an attractive rate, optimising the capital structure of the fund and further underpinning returns to investors.”

Midis senior vice president Tom van Rijsewijk said: “This is a great opportunity for Midis to provide debt against a diversified UK solar portfolio with low gearing levels.”

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