Infrastructure Capital Group (ICG) is pleased to announce that it has secured a landmark funding package for the refinancing of the $124 million loan to Mumbida Wind Farm (MWF), Energy Infrastructure Trust’s (EIT) 22 turbine, 55 MW wind farm which has been operational since 2013.
Commonwealth Bank of Australia and BNP Paribas provided MWF with a syndicated bank debt facility on competitive terms and with attractive pricing. ICG has locked in this historically low interest rate for the full 12 year tenor of the debt facility, which is fully 100% hedged for that term.
The refinancing continues ICG’s track record of implementing long-term financings on the assets it manages and reducing financing risks for investors.
Craig Whalen, Executive Director noted that “The transaction demonstrates competitive long-term financing is available in the Australian bank debt market for projects which are well structured. There continues to be strong demand for renewable projects, especially those backed by a long-term power purchase agreement from a creditworthy counterparty.”
Andrew Pickering, ICG Chairman and EIT Portfolio Manager said “ICG is particularly pleased with this result. MWF’s debt profile now extends beyond the remaining 10-years of the contracted power purchase agreement with Water Corporation WA, which expires in 2028. This funding package significantly mitigates not only the refinancing risk for MWF but also the impact of any rises in future interest rates.”
ICG acted as financial advisor for the transaction and was responsible all aspects of the refinancing.