Octopus Renewables Infrastructure Trust increases RCF by £120.8 million

Octopus Renewables Infrastructure Trust has increased its multi-currency revolving credit facility (RCF) by £120.8 million to bolster its global renewable portfolio.

The RCF, during its pre-accordion phase, had £150 million committed. This has now been increased to £270.8 million with a three year term until 24 February 2026 and will allow funds to be drawn in GBP, EUR, AUD and USD.

Octopus will be looking to add to its operational portfolio which has nearly 546MW of renewable energy projects. As renewable energy becomes increasingly important to achieve energy security off the back of the Russian invasion of Ukraine in addition to renewable targets, the credit facility will enable an expansion of generation projects.

By increasing and refinancing its RCF, the company can boost its portfolio in the UK, European and Australian markets. As of 24 February 2023, the company had drawn £88.2 million from the RCF.

The facility has an interest rate 2% above the sterling overnight index average (SONIA) and an improved margin compared with the previous facility’s margin of 2.3%.

The RCF has an uncommitted accordion feature that will allow the facility to be increased in size by up to £150 million. The facility had been provided by a group of four lenders which included National Australia Bank, NatWest, Santander and Allied Irish Banks.

“We are pleased to announce the extension and expansion of our revolving credit facility. The RCF will provide ORIT (Octopus Renewables Infrastructure Trust) with additional headroom to support the Company's balance sheet, enabling us to further grow ORIT's diversified portfolio through additional renewable energy projects, all helping to accelerate the green energy transition,” said Phil Austin, chairman of Octopus Renewables Infrastructure Trust.

Last week, Octopus Renewables Infrastructure Trust confirmed it had increased its target dividend for the second year in a row, with the Board setting the target at 5.79p per ordinary share for the financial year from 1 January 2023 to 31 December 2023.

The company said it is expecting to fully cover the dividend target by cashflows from its operating portfolio.

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