Lightsource Renewable Energy secures £284m refinancing for UK solar projects

4 November 2015 (Last Updated November 4th, 2015 18:30)

UK solar energy giant Lightsource Renewable Energy has completed £284m refinancing for nationwide solar projects totalling 101MW, which are all owned by the company.

UK solar energy giant Lightsource Renewable Energy has completed £284m refinancing for nationwide solar projects totalling 101MW, which are all owned by the company.

The portfolio comprises 33 operational, ground-mounted solar projects, which fall under 20-25 year fixed income tariffs under the UK government’s Feed in Tariff subsidy regime.

This transaction represents the first step into the long-dated institutional market by the firm, which has secured over £1.1bn of project finance debt this year.

M&G Investments Infrastructure Finance head John Mayhew said: "Consolidation within the solar sector is providing investable opportunities for institutional clients.

"This transaction represents the first step into the long-dated institutional market by the firm, which has secured over £1.1bn of project finance debt this year."

"We have structured the deal to deliver inflation-linked returns, with good security to ensure risks are appropriately rewarded.

"The injection of a quarter of a billion pounds of long-term institutional financing will enable Lightsource to grow and develop further sites across the UK.

"The latest deal brings M&G’s debt investment into the sector to more than £385m in the past 12 months, providing power for the equivalent of almost 90,000 average-sized homes."

M&G Investments had offered £247m of the total funds through a 22-year inflation linked finance arrangement.

The remaining £37m has been secured from AMP Capital through an eight-year mezzanine facility.

In August 2015, Lightsource Renewable Energy had announced about offering investment boost to promote solar power generation in Ireland.