Tilt Renewables raises equity for US$400 million wind project in Australia

Subscribe to our newsletter and get the latest news and business opportunities in your inbox
Tilt Renewables raises equity for US$400 million wind project in Australia

This article is part of a daily series of IPP articles. If you want to know more about the latest power generation projects globally visit our IPP Today section. You can receive them by email on a daily basis.

Tilt Renewables Limited has announced that it is raising approximately AUD260 million (US$185.3 million) of new equity to fund the construction of the 336 MW Dundonnell wind project, located in Victoria, south-east Australia.

The project is expected to cost approximately AUD563 million (US$401.2 million).  A total of AUD300 million (US$213.8 million) for the project costs will be funded by a combination of a syndicated bank debt package from Tilt Renewables' existing banking syndicate and a term facility with the Danish Export Credit Agency.

The remaining expected construction costs are being raised through an underwritten pro rata accelerated entitlement offer of new ordinary shares. Under the offer, eligible Tilt Renewables shareholders are entitled to acquire one new share for every two existing shares held on the record date (22 February 2019).

The offer price is NZD1.75 (US$1.20), with approximately 156 million new shares to be issued.

The institutional entitlement component of the offer was completed this past Friday. It raised gross proceeds of approximately NZ$247.5 million (US$169.3 million) through the issue of approximately 141.4 million new ordinary shares. Eligible institutional shareholders elected to take up 100% of their entitlements.

The new shares taken up under the institutional entitlement offer are expected to be allotted and commence trading on 28 February 2019.

The retail component of the offer will open on 26 February 2019 and will close on 14 March 2019, at the same application price as the institutional entitlement offer.

Citigroup Global Markets Limited and Forsyth Barr Group Limited are acting as underwriters and lead managers of the offer. Reunion Capital Partners Pty Ltd is acting as financial adviser to Tilt Renewables.

Construction of the wind farm commenced in January 2019. Tilt Renewables has contracted Vestas to supply turbines under a full Engineer, Procure and Construct (EPC) contract.

Under its Support Agreement with the Victorian Government, which covers 37% of the electricity produced by Dundonnell, Tilt Renewables is obligated to begin supplying energy from the wind farm by September 2020.

List of country news

Country news

  • January 15, 2019

    US$320 million financing secured for 330 MW solar project in Australia

    Edify Energy has announced that it has arranged more than AUD450 million (US$316.9 million) to finance the 333 MWDC (275 MWAC) Darlington Point Solar Farm, set to be the largest solar power station in Australia, in partnership with Octopus Investments.

    Read more
  • December 19, 2018

    Australian state government approves 630 MW solar projects

    The government of New South Wales has approved the construction of four solar projects in the state, located in the south-east of Australia, with a combined generation capacity of over 630 MW and a total investment of AUD850 million (US$610 million).

    Read more
  • December 13, 2018

    Snowy Hydro Board approves proceeding with 2 GW expansion

    The independent Board of Snowy Hydro Limited has approved a final investment decision to proceed with Snowy 2.0, a pumped hydro project that will provide 2000 MW of on-demand generation and 350,000 MWh of large-scale energy storage.

    Read more
  • November 16, 2018

    Tilt Renewables achieves financial close of US$400 million wind project in Australia

    Tilt Renewables has announced that the 336 MW Dundonnell Wind Farm located in Western Victoria, south-east Australia, has successfully reached financial close. The project is expected to cost AUD560 million (US$404.2 million).

    Read more
  • November 06, 2018

    Snowy Hydro contracts 888 MW wind and solar power in Australia

    Australian energy provider Snowy Hydro has announced that it has signed Power Purchase Agreements (PPA) for eight wind and solar projects totalling 888 MW. Located across New South Wales and Victoria, states in the south-east of Australia, the projects are expected to generate about 2.8 terawatt hours of energy annually.

    Read more

Share this news

Join us

In order to get full access to News section, you must have a full subscription. You can check all the benefits of becoming a member and purchase a subscription on our membership page.