01 November 2018

Successful Refinancing of ARIF’s Hallett 4 Wind Farm

Infrastructure Capital Group is pleased to announce that Hallett 4 Wind Farm (H4WF) has successfully completed the refinancing of its $338m senior debt facility. ICG’s managed Australian Renewable Income Fund (ARIF) owns 39.9% of H4WF.

H4WF is a 63 turbine, 132.31MW wind farm that has been operating since December 2010 and is underpinned by a 25-year offtake agreement with AGL. Under this agreement AGL retains the wind and operational risk of the project.

The new facility comprises in two long-term tranches of senior debt – $160m (Tranche A) and $178m (Tranche B). Tranche A has been funded by a syndicated bank debt facility from ANZ, Mizuho Bank, National Australia Bank and Westpac for a 6-year term.

Tranche B is financed by a ‘Samurai loan’ underwritten by MUFG Bank for a term of just over 12 years. Base interest rates are locked in for the duration of the facility.

Craig Whalen, Executive Director noted that “H4WF is one of the first wind farms which has tapped into the financing available in the Japanese lending market through a Samurai loan. Along with a 6-year tranche, the refinancing secures H4WF’s long-term funding needs at a favourable time in the market – particularly for capital structures such as that offered by H4WF. The refinancing continues ICG’s track record of implementing long-term financings on the assets it manages, thus reducing financing risks and maximising value for investors.”

Andrew Pickering, ICG’s Chief Investment Officer said “The H4WF deal is another landmark refinancing as it builds upon the innovative refinancing ICG has recently completed – Mumbida Wind Farm (12-year bank debt), Hallett Hill No 2 Wind Farm (12-year USPP) and Wattle Point Wind Farm (10-year bank debt).

“Given refinancing risk is one of the only risks we are exposed to on H4WF, this significantly de-risks the asset.”

As a shareholder and board representative of H4WF, ICG congratulates all those involved in the transaction.