NextEnergy Solar Fund Ltd (LSE:NESF) (NESF) has extended its £70mln credit facility with Santander UK by two years, allowing it to take advantage of investment opportunities in the renewable energy sector.
"The £70mln RCF [revolving credit facility] extension builds on our successful relationship with Santander and provides NESF with the continued firepower to take advantage of the attractive investment opportunities we are pursuing,” said Ross Grier, UK managing director of NextEnergy Capital.
He noted that the loan was secured on attractive terms, given the backdrop of inflation and rising interest rates, with a margin of 160 basis points over the Sterling Overnight Index Average (SONIA). The agreement also includes an option to extend the term of the credit facility for another 12 months.
As of 1 July 2022, NESF had £48mln available for immediate drawdown from its RCFs to progress solar and battery storage assets, and the remaining NextPower III ESG (Environmental, Social and Governance) commitment.
Drawn short-term credit facilities currently constitute £97mln of the company's £483mln total debt, with gearing at 42% of total assets