Aquila European Renewables enters €50 million five-year debt facility

By Marisa Wong

Los Angeles, Jan. 8 – Aquila European Renewables plc announced it entered into a €50 million five-year non-recourse debt facility with ING Bank NV Sucursal en Espana.

The debt facility is secured by the company’s wholly owned Spanish solar PV portfolio, which consists of 180 MWp of unlevered operating assets supported by long-term contracted power purchase agreements, according to a press release.

The debt facility implies a conservative gearing level of about 26% for the Spanish solar PV portfolio, based on fair values as of Sept. 30.

The company said it has been able to secure the loan at attractive terms, with an all-in interest rate below the existing revolving credit facility.

Pricing terms of the new debt facility remain confidential, the release noted.

Of the total debt facility, 90% is hedged via an interest rate swap over the life of the loan.

The facility is also partially amortizing, with a balloon repayment at maturity.

The facility also benefits from an €18 million accordion option, as well as two 12-month extension options, both of which are subject to lender consent.

The company intends to use the net proceeds from the debt facility to repay the revolver, resulting in available capacity under the revolver of about €70 million. The current facility limit is €100 million.

As a result, the company’s overall gearing level remains unchanged at about 34% of its gross asset value as of Sept. 30.

The company said the undrawn revolver capacity gives it significant flexibility going forward when considering future capital allocation decisions, which may include the continuation of the share buyback program.

Aquila European Renewables invests in renewable generation assets in continental Europe and Ireland, including wind, solar PV and hydropower projects. The London-listed investment company is advised by Hamburg-based Aquila Capital Investment GmbH.

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