Octopus Renewables Infrastructure Trust plc (LON:ORIT) announced on Thursday that it had secured a £150 million rolling credit facility from a group of five lenders.
The credit facility, provided by provided by Banco de Sabadell, Intesa Sanpaolo S.p.A. London Branch, National Australia Bank, NatWest and Santander, has a term of three years, an interest rate of 2.3% above LIBOR, and can be drawn down in GBP, EUR, AUD and USD. The company added that the facility also features an uncommitted accordion allowing it to be increased by an additional £100 million.
Octopus Renewables said it plans to use a portion of the funds to pay for ongoing construction and acquisition commitments, which will allow further amounts drawn from under the credit facility to be used to acquire further renewables assets.
Speaking on the new facility, ORIT Investment Director, Chris Gaydon, said: “We are delighted to have secured this £150m RCF for ORIT with the support of a group of high-quality lenders. This RCF marks the next step in ORIT’s development and provides additional resources to enable us to continue to grow and diversify ORIT’s portfolio.”
This latest financing development follows the complete deployment of all the funds Octopus Renewables raised as part of its December 2019 IPO. Among the capital allocations were five key acquisitions, including the buy-up of 14 windfarms, the Ljungbyholm Wind Farm, and a 24MW construction-ready windfarm in France.
Despite the seemingly positive update, the company’s shares dipped by 0.47%, to 107.00p apiece – back to just below where it started the year, at 108.80p.