London, 15 December 2020
Macquarie Group’s Specialised and Asset Finance division (Macquarie) has today announced that it has provided a £38 million senior secured debt facility for Green Frog Power. The facility is secured against existing contracts and assets and supports the buyout of funds managed by InfraRed Capital Partners Limited.
Green Frog Power currently owns and operates 222 MW of gasoil powered generation across 12 sites in England and Wales, which are under long term contract to the National Grid. The UK’s electricity network is undergoing significant change as it transitions from conventional fossil fuel dominated generation, to renewable generation. The network currently relies on back-up power generation sites to provide short term electricity reserves during periods of peak demand, network stress and power outages.
Tim Senior, a Managing Director in Macquarie’s Specialised and Asset Finance division said: “Through our deep understanding of the UK’s power capacity market, we were able to structure a competitive debt facility to support the buyout. We are impressed by the ambition of the management team to diversify the business and look forward to working with them as they transition away from diesel asset generation”.
Jeremy Taylor, one of the two founding directors of Green Frog Power commented: “The facility enables us to buy out our excellent original investment partners and reboot the company with a move away from fossil fuels, essential though they currently are for the UK’s energy security, towards battery storage and renewable energy. Macquarie’s deep understanding of our sector was very attractive to us when choosing our banking partners. We are delighted to have closed with them and look forward to a very fruitful relationship.”
Green Frog Power builds and operates state-of-the-art peaking power stations. Since its inception in 2010 it has grown to become one of the UK’s leading peak generators, producing electricity when its most needed. Its power stations are spread across the UK and respond in seconds to the demands of the National Grid.