Octopus Renewables has received a €43.2m fully amortising debt facility
Octopus Renewables Infrastructure Trust (LON:ORIT) confirmed on Tuesday that it has successfully secured debt finance for its ready-to-build wind farm in Cerisou, France which was acquired in October 2020.
The new €43.2m fully amortising debt facility, provided by Societe Generale, will fund the construction, commissioning, operation and maintenance of the 24 MW Cerisou project.
This debt facility will allow the Octopus Renewables to invest the amounts previously committed to the project into other investment opportunities.
Construction at Cerisou is on schedule to begin in H2 2021, with the project expected to be fully operational in the second half of 2022.
The term loan facility is amortising over 23 years from the commercial operations date of the project, with a flat 1.30% interest margin above EURIBOR over the duration of the loan. 90% of the project’s notional interest rate exposure under the term loan has been hedged. Alongside the term loan facility, Societe Generale is providing a Debt Service Reserve Facility and a VAT Facility to the project.
Phil Austin, chairman of Octopus Renewables Infrastructure Trust plc, commented:
“The Cerisou project was the Company’s first wind farm acquisition in France and is now successfully financed with favourable terms agreed with one of France’s leading banks. This facility once again demonstrates the Investment Manager’s commitment to an active approach to asset and portfolio management.”
While investment director Chris Gaydon added:
“The competitiveness of the financial and commercial terms achieved with Societe Generale will allow the Company to optimise returns and cash yield as well as maximising operational flexibility. The construction of the Cerisou project is on track and we look forward to it being fully operational next year.”