Powering Australian Renewables Fund achieves first major milestone

AGL Energy Limited (AGL) on behalf of the Powering Australian Renewables Fund (PARF) has reached financial close on selling its 102 MW Nyngan and 53 MW Broken Hill solar plants into the fund.

The AU$257 million (US$192 million) sale, with approximately nil profit on sale, includes AGL writing a long term offtake agreement with the Nyngan and Broken Hill solar plants.

Lenders to the transaction are Westpac, NAB, Sumitomo Mitsui Banking Corporation (SMBC), Mitsubishi UFJ Financial Group (MUFC) and BNP Paribas.

AGL Managing Director & CEO, Andy Vesey, said today marked a major milestone in the landmark partnership with equity partner QIC and its clients the Future Fund and the QIC Global Infrastructure Fund.

AGL created the fund to help kick-start the investment deadlock in renewable projects by providing an innovative financing platform where like-minded organizations can share the investment risk over the medium-to long-term.

Mr Vesey said:

“The PARF has acquired the Nyngan and Broken Hill solar plants as seed assets ahead of schedule and we’re confident of announcing the first new renewable project build ahead of our original March 2017 target as well”

AGL Chief Financial Officer, Brett Redman, added:

“The PARF will continue to raise debt on a project-by-project basis. Based on the activity we’ve seen so far, we believe the fund will continue to secure strong debt-market support.”

Mr Ross Israel, Head of QIC’s Global Infrastructure team said:

“We have been pleased with the collaborative approach taken to reach this important milestone. PARF’s governance and investment framework has been tested and now successfully implemented with this first acquisition. We look forward to continuing to grow the renewable energy asset portfolio through PARF with our partner AGL.”