NextEnergy Solar Fund refinances GBP-135m revolving credit

UK solar and energy storage investor NextEnergy Solar Fund Ltd (LON:NESF) today announced a refinancing of its existing GBP-135-million (USD 168m/EUR 158m) revolving credit facility (RCF) with AIB Group and NatWest.

The facility, due to expire in June 2024, has been extended until June 2026 with options for further extension until June 2028. According to the announcement, the new facility maintains attractive terms with a margin of 120 basis points over SONIA (Sterling Overnight Index Average). A new lender, Lloyds, has joined the banking consortium of AIB Group and NatWest.

The fund is also set to exercise its option to extend its GBP-70-million RCF with Santander for another 12-months until June 2025 on similar terms.

NextEnergy Solar Fund said that RCFs are an important part of its capital structure, providing flexibility for both investments and repayments. The company remains focused on its capital recycling programme, expecting to use the proceeds to pay down existing borrowings under RCFs.

As at end-2023, the fund had drawn GBP 163 million from its GBP 205 million short-term RCFs and had an unaudited gross asset value (GAV) of GBP 1,173 million, with gearing at 45.7%, within its investment policy limit of up to 50% of GAV.

"We are pleased to have secured similar terms on NextEnergy Solar Fund's primary revolving credit facility. As we have previously indicated, we continue to observe significant lender interest in providing debt to the solar infrastructure sector across the geographies we are active in,” commented Ross Grier, COO and Head of UK Investments at NextEnergy Capital.

(GBP 1 = USD 1.248/EUR 1.171)

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