NextEnergy Solar Fund Ltd (LSE:NESF) told investors it has expanded its bank credit facilities as it looks to progress its pipeline of solar farms and battery storage assets.
The revolving credit facility with AIB Group and NatWest has been extended to £135mln from £75mln, increasing its total borrowing capacity to £205mln.
Of this, the company said it had drawn down £115.5mln so far, meaning it has £89.5mln available.
Ross Grier, UK managing director of the trust’s manager, NextEnergy Capital, said the £60mln increase in the credit facility provides the company with “sufficient headroom to secure solar and battery storage optionality within the immediate pipeline”.
He added that this was secured at “attractive terms considering the current macro environment,” with the additional commitments agreed at a margin of 120 basis points over SONIA and available until June 2024. This put the trust’s gearing levels at 41%, including preference shares and financial debt facilities, of the company's gross asset value, which was £1.2bn at the end of June.