March 25 (Renewables Now) - A majority owned unit of wind farm operator Fred. Olsen Renewables AS has signed a non-recourse project finance facility of GBP 400 million (USD 527.6m/EUR 466m) to refinance its current debt.
The loan deal was signed between Fred. Olsen Wind Ltd and MUFG Bank, National Australia Bank, Siemens Bank and Sumitomo Mitsui Bank Corporation. The new term loan has a tenor of about 13 years, extending to 2032. Margins begin at 1.4% and rise to 1.6% in 2023 and 1.7% in 2028.
Fred. Olsen Renewables, which is the renewables division of Norwegian group Bonheur ASA (OSL:BON), said that the refinancing will result in a GBP-87-million capital release for the firm. The move aligns with its strategy of optimising the capital structures of its projects and reducing the total cost of funding, it explained.
(GBP 1.0 = USD 1.319/EUR 1.165)