Octopus completes UK solar portfolio refinancing

Octopus Energy Investments, an owner of solar assets in the UK, has secured £484 million (US$621 million) refinancing of debt attached to dozens of solar projects across England and Wales.

The medium tenor senior provided by six banks has replaced its previous £400 million (US$513.3 million) bridge facility. The banks, Banca IMI, Barclays, BNP Paribas, La Caixa, Royal bank of Scotland and Santander Global Corporate banking, acted as mandated lead arrangers.

The 74 ground-mounted solar PV plants totaling 522 MW, earn government-backed revenues from the UK's Renewables Obligation scheme. Financing was not based around long-term PPA contracts usually associated with such loans, the company stated it was based around a flexible rolling power offtake strategy.

Matt Setchell, head of Octopus Energy Investments, said:

“This deal has further strengthened our relationships with a group of experienced renewables lenders and bolstered our in-house expertise. Financial innovation such as this will accelerate the transition to the clean energy system of the future, something we’re committed to continue to lead on.”

RBS and Linklaters advised Octopus, while the lending parties were advised by Sgurr, Ashurst and Operis.