Firm continues to expand its renewable energy portfolio as a leading investor in the space.
Blackfinch Investments Limited, a division of Blackfinch Group, (Blackfinch) completed the acquisition of two EWT onshore wind turbines, located near to Kingston upon Hull in East Yorkshire, on 29th November 2018.
The turbines, each with a 500kW generation capacity, were acquired through Blackfinch’s renewable energy investment entity, Sedgwick Trading Limited (Sedgwick). This is Sedgwick’s third wind project acquisition in the past year.
The project benefits from the feed in tariff (FiT) subsidy and will provide renewable electricity to an onsite farm through a private wire Power Purchase Agreement (PPA), while the excess generation will export to the electricity grid. The total generation from the two turbines is expected to be sufficient to power about 1,000 homes.
Senior debt for the project was provided by Santander UK plc (Santander). The project is the first one based on EWT technology that Santander has funded using project finance. Katie Bagshaw, Director, Infrastructure and Renewable Energy at Santander said: “We are excited to work with TLT again and support Blackfinch with the further expansion of its clean energy portfolio in the UK. The continued growth of this portfolio and the performance of the sites to date demonstrate that this is a buoyant market, and we are looking forward to realising further opportunities to support the growing clean energy market next year.”
The transaction included complex negotiations to accommodate the private wire arrangements and TLT LLP (TLT) provided legal advice to Santander and Blackfinch, led by Banking Partner Gary Roscoe. Gary says: “This deal is a further example of the continued buoyancy we are seeing in the M&A and debt finance markets for renewable projects given their long-term, stable returns and clean energy credentials. We are delighted to have worked with Blackfinch and Santander once again to complete this deal and ensure that this project continues to deliver operationally and strategically for them.”
Guy Lavarack, Renewables Investment Director at Blackfinch said, “We are pleased to add the EWT turbines to our renewable energy portfolio operating on sites across the UK, covering solar PV and onshore wind generation, taking the number of installations to 31. TLT provided fantastic support and expertise throughout the transaction, while Santander delivered hands-on support and pragmatic solutions to deliver the funding, and we are thrilled to have been party to Santander’s project financing of EWT technology for the first time in this transaction. With a commitment to renewable energy investments, we will maintain our focus on delivering strong returns for investors as the market grows.”
To find out more about our IHT Portfolios, click here.