Renewable energy venture capital company Albion Capital has successfully raised £57 million in debt by refinancing a portfolio of £105 million.
The refinancing required long-term, non-recourse, institutional, RPI-linked debt, the company expanded. This came from funds managed by Aberdeen Standard Investments.
The portfolio, supported through the feed-in tarriff (FiT) and Renewable Obligation Certificate (ROC) schemes, includes onshore wind, hydro, solar and battery projects.
These have delivered unlevered returns of between 15% and 20% for shareholders, according to the company. This is more than 30% above the target returns.
Albion Capital said that it demonstrated the company’s ability to raise, deploy and return institutional funds within five years.
David Gudgin, partner at Albion Capital, said: “Albion Community Power introduced institutional investors to the Albion brand for the first time, and we are pleased to have delivered such a good result for our shareholders.
“Moving forward, the ACP fund continues to invest in renewable energy assets and we are keen to add further institutional investors targeting long term, uncorrelated, RPI-linked cash flows alongside our existing LPs.”
He added that IDCM and Burges Salmon, both of whom advised the company, were “invaluable”, adding value at each stage of the refinancing process.
The company has now raised and deployed over £250 million in the UK renewables sector over the last decade.