Banks Renewables Reaches £210 Million Financial Close for CfD Wind Trio
UK wind developer Banks Renewables announced today it has closed £210 million in a “bespoke funding package” for a 151 MW wind trio in Scotland and England.
The transaction for the 88 MW Kype Muir and 51 MW Middle Muir projects in South Lanarkshire and the 12 MW Moor House project in County Durham involved a club of international lenders. They comprised Macquarie Infrastructure Debt Investment Solutions, Santander, ING, National Australia Bank and Rabobank.
All three projects were successful under the UK government’s first round Contracts for Difference regime in 2015 and Banks Renewables said it had been “working towards putting the commercial structures in place to take them forward” since that time.
Middle Muir and Moor House are scheduled to connect to the grid in 2018 while Kype Muir is expected to come online at the start of 2019. Once live, they will boost Banks Renewables’ generation capacity from 74 MW to 224 MW.
German wind turbine manufacturer Senvion SE will supply 46 of its turbines for the wind trio as well as providing operations and maintenance under a 20-year contract.
Banks Renewables has signed a long term power purchase agreement with Danish wind giant DONG Energy for the output of all three assets.
KPMG and law firms Ashurst and Brodies advised Banks Renewables on the deal, while the lenders were advised by Norton Rose Fulbright and Burness Paull.
“The Kype Muir, Middle Muir and Moor House wind farms have all taken many years of challenging development to get to this stage, and being successful in the government’s first ever CfD auction against stiff competition was critical to the projects’ success,” said Richard Dunkley, managing director at Banks Renewables.
“This investment package is a real expression of confidence in both Banks Renewables and the wider UK onshore wind sector, and it’s exciting to now be accelerating the process of taking these three wind farms forward.”
By Kate Thorburn at CLEAN ENERGY PIPELINE