Octopus Renewables secures loan for 24-MW French wind farm

UK-based Octopus Renewables Infrastructure Trust plc (LON:ORIT) said Tuesday it has obtained EUR 43.2 million (USD 51.9m) in debt financing for its 24-MW shovel-ready wind project in Cerisou, France.

The term loan will back the construction, commissioning, operation and maintenance of the Cerisou project that was acquired by ORIT in October last year for EUR 56 million, including future construction payments.

The wind farm is due to start construction in the second half of the year and to come online in the second half of 2022.

The Octopus Investments Ltd-managed trust said that the financing will allow it to direct the money previously earmarked for the project to other investment opportunities.

The debt facility, secured from Societe Generale SA (EPA:GLE), is amortising over 23 years from the project's start-up and has a flat 1.30% interest margin above EURIBOR. Societe Generale is also providing a debt service reserve facility and a VAT facility to the project.

"The Cerisou project was the Company's first wind farm acquisition in France and is now successfully financed with favourable terms agreed with one of France's leading banks," noted ORIT chairman Phil Austin.

(EUR 1.0 = USD 1.201)

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