KUALA LUMPUR: Tenaga Nasional Bhd's unit has secured a £120mil (RM652mil) financing facility with Bayerische Landesbank (BayernLB) which will be used to finance its 80% stake in two UK-registered renewable firms.
The power giant said on Monday its unit Tenaga Wind Ventures UK Ltd signed the deal on March 28 in London for the refinancing of its acquisition of GVO Wind Ltd and Bluemerang Capital Ltd. The two companies were acquired on Feb 28.
“The combined portfolio of the two companies makes Tenaga Wind Ventures as the owner of the largest feed-in tariff portfolio in the UK.
“The portfolio comprises 53 operational onshore wind turbines with a total combined capacity of 26.1MW spread across England, Scotland and Wales,” it said.
Tenaga said the refinancing exercise represents the first overseas non-recourse acquisition refinancing that it has undertaken through a unit.
This is also the UK’s largest financing for medium scale operational Feed-in Tariff (FiT) on-shore wind portfolio, to date.
Tenaga president and CEO Datuk Seri Ir. Azman Mohd described the completion of the refinancing exercise as a momentous achievement for the power giant.
“This refinancing exercise is a significant step for Tenaga as we continuously expand our renewable energy (RE) operations under the Reimagining Tenaga strategy to position ourselves as one of the top global utility players by 2025.”
He said Tenaga was proud to have BayernLB as a partner in this transaction and look forward to make further investments in the renewable energy sector.
Senior director of project finance at BayernLB, Karin Schramm said: “We are delighted to form a partnership with Tenaga in this benchmark financing of the UK’s largest portfolio of single medium scale wind turbines.
“With this transaction, the bank supports Tenaga’s strategy to increase Tenaga’s investment in renewable energy and other environmental assets.
"BayernLB has a long and successful history of providing long-term finance within the renewable sector.”
Dentons UK and Middle East LLP, Longspur Capital and JCRA assisted Tenaga in this refinancing exercise.
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