NextEnergy Solar Fund Ltd (LSE:NESF) has extended its £70m revolving credit facility (RCF) with Santander by a year to expire in June 2025.
NESF will pay a coupon on the debt of 150 basis points over the Sterling Overnight Index Average (SONIA), down from 160 basis points.
It recently pushed out the due date on a £135m 'revolver ' to June 2026, an agreement that includes two additional 12-month extension options at the company's discretion.
"The extension of this revolving credit facility on improved terms is a testament to NextEnergy Solar Fund's large portfolio of high-quality assets and the availability of debt financing for leading market participants," said Ross Grier, chief operating officer and head of UK investments, of the fund's manager, NextEnergy Capital.
"We are happy to continue our strong relationship with Santander as the sole counterparty to this facility. NextEnergy Solar Fund prides itself on its disciplined capital structure and continues to prioritise the capital recycling programme where the proceeds will be used to pay down existing RCF borrowings."
As of the end of 2023, NESF had drawn £163m from its £205m short-term RCFs. Its unaudited gross asset value stood at £1,173m, with financial debt gearing at 28.8% and total gearing at 45.7%, well within its policy limits.