Energy lawyers at Bond Pearce have advised REG Windpower, on the project financing of five operational wind farms. The twelve year project finance agreed with The Co-operative Bank when added to existing resources will provide REG with a total of £20 million for reinvestment. The deal reflects how instrumental project financing is to the growth of the renewables industry. The five wind farms are spread across the country from Cornwall to Cumbria.
Sebastian Briggs, Corporate Finance Partner at Bond Pearce led the team who advised REG. He says: “It has been a pleasure to advise REG on such a significant transaction. The expansion of the UK renewables sector faces considerable challenges but this portfolio financing demonstrates that good quality operating projects can be utilised to release additional development funds. This is a welcome further source of capital for the sector which we anticipate is a model that other developers will be keen to replicate.”
Andrew Whalley, Chief Executive Officer of REG, said: “This first phase of our project financing represents an important milestone for REG as it demonstrates our ability to finance multiple small wind projects at competitive rates. Successful financing of our existing operational wind farms, allied to the rapid growth of projects in the planning system, is expected to deliver accelerating returns to equity holders over the next few years.”
This deal follows the recent project finance deal that Bond Pearce advised on for Banks Renewables, part of The Banks Group. This was another successful funding agreement with The Co-operative Bank to part-fund the construction of two new Yorkshire wind farms with a total investment of £21m.
Briggs predicts: “This project finance model will be instrumental in increasing the numbers of renewables projects that are constructed, particularly with the Government facing steep policy targets regarding the significant reduction of UK carbon emissions by 2050.”
