April 3 (Renewables Now) - Clean energy yieldco Atlantica Yield Plc (NASDAQ:AY) said on Friday it has closed a private placement of green senior secured notes in euros raising EUR 290 million (USD 312.6m).
The notes have a tenor of six years and bear an annual coupon of 1.96%, payable on a quarterly basis. Atlantica said net proceeds had been primarily used to repay the 2017 senior secured note issuance facility agreement (2017 NIFA).
The closing of this transaction is expected to result in a cost improvement of around USD 10 million (EUR 9.3m) per year as of 2021, as well as a longer tenor by around three years compared to 2017 NIFA. Additionally, the financing will lead to a natural hedge for cash available for distribution (CAFD) generated in euros.
“Closing this transaction has been very important for Atlantica, as it allows us to significantly reduce our financing cost while extending maturities in a context of high volatility in the financial markets”, Atlantica’s CEO Santiago Seage said.
The placement is in line with 2018 Green Bond Principles, the company added.
(EUR 1.0 = USD 1.078)
(USD 1.0 = EUR 0.93)