Octopus Renewables Infrastructure Trust (ORIT), an investment company, announces that it has signed a £100 million (~$125 million) five-year term loan facility with three of its existing lenders, Santander, National Australia Bank, and Allied Irish Banks.
The funding is secured against ORIT’s U.K. onshore wind and solar assets. The company has secured an all-in hedged interest rate of 5.3%, representing a material decrease in costs from the existing RCF, which has an all-in rate of approximately 6.5%.
The funding will be used to pay down a portion of the existing and more expensive Revolving Credit Facility (RCF) debt. According to ORIT, it has drawn £151.2 million (~$191 million) on the RCF so far. This funding will help reduce the drawn amount to c.£53 million (~$67 million).
In addition, the Company is currently in the process of extending the tenor of the RCF and reducing its commitment size from £270.8 million (~$342 million) to decrease commitment fees and further reduce costs.
“This new facility demonstrates ORIT’s ongoing commitment to reducing overall debt costs, enabled by the attractive terms secured by the Investment Manager against the high level of fixed revenue from these U.K. assets. The Company continues to examine further measures it can take to reduce costs and drive value for shareholders.” Phil Austin, Chair of Octopus Renewables Infrastructure Trust, commented.
ORIT is stated to invest in a diversified portfolio of renewable energy assets in Europe and Australia. ORIT’s investment manager is Octopus Energy Generation.
According to Mercom’s Annual and Q4 2024 Solar Funding and M&A report, announced debt financing came to $18.8 billion, 6% lower compared to $20 billion in 2023. Securitization deals were a key contributor, with a record $5 billion in 16 deals.
In December, WATT Renewable Corporation, a hybrid solar project developer, secured a $15 million debt facility through several of its project companies from the AFRIGREEN Debt Impact Fund, an infrastructure senior debt fund.
