NextEnergy Solar Fund prolongs ₤ 70m RCF with Santander as it continues expansion
- NextEnergy Solar Fund has expanded its existing ₤ 70 million revolving credit facility (RCF) with Santander UK.
The modified terms consist of a margin of 160bps over SONIA (Sterling Overnight Index Standard), and includes an uncommitted option to extend the facility for an additional year.
Ross Grier, UK taking care of supervisor of NextEnergy Capital, commented: "The ₤ 70m RCF extension improves our effective relationship with Santander as well as supplies NESF with the continued firepower to make use of the attractive financial investment opportunities we are pursuing. The facility was protected on appealing terms, offered the backdrop of rising cost of living as well as rising rate of interest."
As of 1 July 2022, NextEnergy Solar Fund had ₤ 48 million available for prompt drawdown from its RCF's, which will certainly enable it to proceed solar as well as battery energy storage space possessions as well as the staying NextPower III ESG commitment-- the company's private ESG solar fund that is concentrated on energy scale solar possessions in OECD markets.
| Provider | Short term credit facilities (RCF) | Drawn down | Expiry |
|---|---|---|---|
| Santander UK | £70m | £22m | July 2024 (excluding 12-month extension) |
| AIB & NatWest | £75m (+£25m accordion) | £75m | June 2024 |
| Total | £97m | ||
| Available RCF | £48m |
Attracted brief credit facilities stand for ₤ 97 countless NextEnergy Solar Fund's overall ₤ 483 million financial debt capital structure. Gearing degrees continue to be at 42% of the company's gross asset value, which sat at ₤ 1.15 billion as of 31 March 2022.
Raised power prices have improved the company's properties value along with its revenues, which grew by 19% to ₤ 114 million in its full year 2021/22 results.
NextEnergy Solar Fund has actually been continuing to expand its portfolio in the UK, hitting a 100 property milestone previously this year. It has likewise begun expanding internationally through NextPower III LP, taking its primary step right into the Spanish market in Q1 2022, with a co-investment purchase that saw it take on a 25% risk in a 50MW project under construction in Cádiz.
Santander has also been significantly active in the clean energy space, consisting of supplying financing for TagEnergy and Harmony Power's 49.5 MW/99MWh system Chapel Farm standalone energy storage system, providing Anesco with a ₤ 12 million RCF and also giving Zenobe with a non-recourse financial obligation facility of over ₤ 60 million, permitting it to start building of its 100MW/107MWh battery at Capenhurst, near Chester.
Mark Cumbo, supervisor of specialized and also project financing at Santander UK said: "We are delighted to support NextEnergy Solar Fund with this most recent funding package. Santander UK highly supports clients such as NextEnergy Solar Fund that are bringing positive ecological change to the UK's power field."