DEAL: Banks Renewables wind farm financing

Author: Lizzie Meager | Published: 14 Mar 2017

A renewable energy firm has opened up a new funding option for projects everywhere, closing a deal made up of both bank debt and institutional funding from the beginning for the first time.

The wind farms will be constructed in the north of England and Scotland
Banks Renewables raised £210 million ($256.8 million) to develop a 151MW portfolio of three onshore wind farms in Scotland and the north of England - in Kype Muir, Middle Muir and Moor House.

The £210 million is comprised of both commercial bank debt and institutional debt, with the former including commercial term facilities, construction guarantee facilities, construction revolving credit facilities (RCF) and bonds. On the institutional side, there are both fixed rate and consumer price index (CPI)-linked tranches.

“The hybrid structure means you have a long-term financing solution from the get-go,” said David Wadham, partner at Ashurst who advised Banks Renewables. “I’m not aware of...