31 July 2019
By Bryan Smyth
bryan@TheCork.ie
Amarenco, the Cork-based independent renewable energy power company, through its investment platform Infram Energy has reached financial close of the final tranche of a total of €123 million in long term financing facilities for its operational solar asset portfolio, mixing both brownfield and greenfield projects. Led by Amarenco as Infram Energy’s MSA provider and shareholder, the financial close marks the completion of an overall €158 million integrated group financing programme, which commenced with the closure in February 2019 of a €35 million revolving construction finance facility for Infram’s solar asset pipeline in France.
Infram Energy is a renewable energy investment platform established in 2017 between Amarenco and Infracapital’s Greenfield Fund with 85MW of operational solar assets in France. Amarenco acts as principal management services provider to Infram Energy on all development, financing, construction and operational aspects of Infram Energy’s business.
Nick Howard, CIO at Amarenco, commented: “This is a significant strategic financing transaction for Infram Energy, streamlining the financing process of its business, reducing its cost of capital and providing a low-cost, flexible source of finance for its development and construction asset pipeline. Infram can now focus on accelerating its growth and continuing its success story as one of France’s leading solar PV players.”
The long-term financing facilities were arranged jointly by Landesbank Saar (SaarLB), and Auxfip (Credit Agricole Unifergie) with BPIFrance Financement participating as co-lender and provide Infram Energy with long term finance for its 70MW operating asset portfolio comprising a mix of ground mounted, agricultural barns and greenhouses solar assets in France. The transaction has leveraged historically low interest rates in the debt market which, combined with the very competitive commercial terms of the facilities, gives Infram a market leading low-cost and long-term financing package.
The €35 million revolving credit facility for Infram’s construction assets, which closed in February 2019 with Landesbank Saar (SaarLB), provided Infram with a flexible financing solution to bridge long-term project finance from early development to post commissioning for Infram’s extensive solar assets pipeline. As of today, the facility is fully drawn and the first roll-out to refinance the first batch of projects with long-term finance is expected to occur in the coming weeks.
Nik Roessner, Chairman, Infram Energy commented: “The board of Infram Energy is pleased to announce that the company has closed a major refinancing program, which has allowed the business to capitalise on attractive market rates and will provide the group with an optimised capital structure for the next phase of its growth. Infram energy now manages 125 MWp of operational and in-construction assets and aims to add material further growth in the coming year, focusing on the French PV market. We thank our management services provider and co-shareholder Amarenco for their efforts in closing this milestone transaction.”
Infram Energy was advised on this transaction by Finergreen acting as financial adviser, and LPA-CGR acting as legal adviser.