28 November 2014

Wattle Point Wind Farm Refinancing Successfully Completed

Infrastructure Capital Group is pleased to announce that Wattle Point Wind Farm has successfully refinanced its $A161m million senior debt facility. Completion occurred ahead of the scheduled refinance date of April 2015.

The refinancing was strongly supported by the project finance market with 5-year facility being provided by Commonwealth Bank of Australia and Sumitomo Mitsui Banking Corporation together with a 10-year facility provided by investment clients of asset manager, Babson Capital.

The transaction marks a significant milestone for the senior debt market in Australia with the introduction of US-based institutional funds as long-term senior-debt lenders to an Australian infrastructure project.

Craig Whalen, Executive Director of ICG who led the transaction commented: “This is one of the first times in the Australian infrastructure finance market that non-traditional lenders have participated in a syndicated debt facility alongside institutional banks. The refinancing takes advantage of the favourable debt market currently available to borrowers and provides funding diversification to Wattle Point – today as well as in the future.”

The refinancing continues the Commonwealth Bank of Australia’s association with Wattle Point having been a lender since its inception in 2007 and introduces Sumitomo Mitsui Banking Corporation and Babson Capital to the project.

ICG was responsible for all aspects of the refinancing which involved a competitive tender process with prospective bank and institutional lenders, arranging due diligence, financial modelling and negotiating loan documentation.

Wattle Point Wind Farm is a 91MW generator located on the Yorke Peninsula in South Australia. The project is supported by a long-term off-take and asset management agreement from AGL and was acquired by EIT in 2007.