London-based solar developer, Primrose Solar has agreed a £29 million finance package with M&G Investments to refinance four UK solar farms.
The four solar farms total 39MW of capacity and are located in Glamorgan, Norfolk and Dorset. The finance provided is inflation-linked and is repayable over 18.5 years.
Commenting on the deal, Giles Clark, CEO of Primrose Solar said: “We are very pleased to have worked with M&G and Novatio Capital Limited to complete the refinancing of our first four solar farms. Securing long-term financing from a major institutional investor such as M&G is a strong endorsement of the quality of these sites, and of our commercial arrangements.”
Tim Huband, head of project and infrastructure finance at M&G Investments added: “This landmark transaction injects long-term institutional financing into the emerging solar power sector. We have structured the deal to deliver inflation-linked returns, with good security to our pension fund clients.
“Given this is a relatively new sector seeking institutional investment it is essential for deals to be structured to protect client capital and ensure risks are appropriately rewarded. The investment characteristics on offer from this sector are attractive to our clients and we are keen to do more.”
Clark added that Primrose Solar now has 175MW of UK solar assets either operating or under construction.