London, 23 February 2022
Macquarie Asset Management, on behalf of its institutional clients, has announced that it is the sole lender in a £275 million refinancing of a portfolio of solar power plants in the United Kingdom owned by Vantage Solar UK.
The 365 MW portfolio is comprised of 24 ground-mounted solar photovoltaic plants located across England and Wales, and aligns with the European Union’s taxonomy for sustainable activities. The operational portfolio makes an important contribution to the United Kingdom’s supply of clean energy, producing enough electricity to power the equivalent of more than 90,000 homes each year whilst helping to avoid approximately 3,300 kilotonnes of carbon dioxide equivalent emissions over the remaining lifetime of the portfolio.
The portfolio is largely owned and operated by Vantage RE, a UK-based renewable energy investment and asset management firm owned by Bursa Malaysia-listed electricity utility Tenaga Nasional Berhad. The financing agreement arranged by Standard Chartered features a 13-year tenor and will enable Vantage Solar UK to refinance existing shorter-term debt.
Tom van Rijsewijk, a Managing Director at Macquarie Asset Management, said “Access to institutional savings pools will be key if the UK is to continue the build-out of clean generation capacity and deliver on its target of achieving net zero emissions by 2050. This refinancing is a perfect demonstration of this investment theme in action, providing Vantage Solar UK with the long-term financing it needs to deliver on its strategy whilst providing our clients with a sustainable investment opportunity that contributes directly to the low-carbon transition.”
Vian Davys, CEO at Vantage RE, said “This refinancing represents a major milestone for the shareholder’s portfolio, for which Macquarie has provided good collaboration and support throughout the process. This new debt package provides us with greater certainty with regard to the delivery of our long-term investment and asset management strategy, in line with Tenaga Nasional Berhad’s aspiration to be a leading sustainable energy solutions provider.”
Since 2012, Macquarie Asset Management has lent approximately £2.6 billion across approximately 40 renewable energy projects representing a total installed capacity of more than 15.5 GW via its infrastructure debt platform. This includes approximately £1.9 billion invested in renewable energy projects across the United Kingdom.
Tenaga Nasional Berhad (TNB) is a leading Malaysian utility company in Asia with an international presence in the United Kingdom, Kuwait, Turkey, Saudi Arabia, Pakistan and India. Within the renewable energy space as at December 2021, TNB has a total portfolio of 2,771.4MW in Malaysia (including 2,536.1MW of large hydro) and 708.1MW across the UK, Turkey and India comprising mainly solar, wind and hydro energy generation assets.
Vantage RE Ltd. (Vantage RE), a wholly owned subsidiary of TNB has been established to own, operate and manage a portfolio of renewable energy (RE) assets in the United Kingdom (UK) and Europe. Headquartered in London, Vantage RE’s portfolio consists of solar, onshore and offshore wind assets and today, it has a total of capacity of c.450MW.