Macquarie Asset Management Provides $373 Million Debt for UK Solar Portfolio

Macquarie Asset Management, a global asset manager on behalf of its institutional clients, has provided a £275 million (~$373.4 million) debt refinancing for 365 MW of solar portfolio in the UK.

The portfolio comprises 24 ground-mounted solar PV projects located across England and Wales. Upon completion, the portfolio contributes to the UK’s clean energy supply, producing enough electricity to power the equivalent of more than 90,000 homes each year.

The solar portfolio is owned and operated by Vantage RE, a UK-based renewable energy investment and asset management firm owned by electricity utility – Tenaga Nasional Berhad.

Standard Chartered arranged the financing agreement with a 13-year tenor, enabling Vantage Solar UK to refinance existing shorter-term debt. Tom van Rijsewijk, a Managing Director at Macquarie Asset Management, said, “Access to institutional savings pools will be key if the UK is to continue the build-out of clean generation capacity and deliver on its target of achieving net zero emissions by 2050. This refinancing is a perfect demonstration of this investment theme in action, providing Vantage Solar UK with the long-term financing it needs to deliver on its strategy while providing our clients with a sustainable investment opportunity that contributes directly to the low-carbon transition.”

“This refinancing represents a major milestone for the shareholder’s portfolio, for which Macquarie has provided good collaboration and support throughout the process. This new debt package provides us with greater certainty with regard to the delivery of our long-term investment and asset management strategy, in line with Tenaga Nasional Berhad’s aspiration to be a leading sustainable energy solutions provider,” said Vian Davys, CEO of Vantage RE.

According to Mercom’s recently published Q4 2021 solar funding and M&A report, announced large-scale project funding came to $18.7 billion in 185 deals in 2021 compared to $18 billion in 167 deals in 2020. In December 2021, Queequeg Renewables (QQR), a solar project developer, secured equity funding for a 500 MW solar project portfolio across the UK through a joint venture with Energy Transition Partners (ETP), a private equity investment firm.