HgCapital and its portfolio company RidgeWind have reached financial close on the 20.5MW Wandylaw wind project in Northumberland, England. The total debt and equity value of European renewable energy projects financed by HgCapital now exceeds EUR1.5 billion and over 700MW, including more than 50 wind, solar and hydro power plants.
The Wandylaw project was developed by RidgeWind and consists of 10 REpower MM92 wind turbines, and will sell power and renewable obligation certificates to Statkraft under a long‐term contract. Consistent with RidgeWind’s long‐standing commitment to local communities, the Wandylaw project will make contributions in excess of GBP1.25 million to a local community fund. HgCapital provided 100% of the equity for Wandylaw’s development and construction, and Royal Bank of Scotland acted as sole mandated lead arranger, agent and hedging bank for GBP36million in construction and term loan project financing.
Andrew Buglass, Head of Energy at Structured Finance, RBS, says: “Following the success of the Hall Farm project we are proud to have delivered on the financing of the Wandylaw project with HgCapital and RidgeWind and are keen to continue working together to deliver on the UK Government’s renewables targets”.
Construction will start later this month, and the wind farm is scheduled to enter operation in early 2013. HgCapital’s funds are now invested in over 200MW of UK onshore wind projects in operation, consented or in construction, with over another 300MW in development.
Tom Murley, head of HgCapital’s renewable energy team, says: “Wandylaw is a great achievement for RidgeWind and for HgCapital and cements HgCapital as the leading fund investor in EU renewables. Since the first closing on our second fund nearly two years ago, the HgCapital team and its partners have closed on 11 investments in four countries and have committed over EUR275 million in equity capital.”
Luigi Pettinicchio, who led the financing for HgCapital commented: “With a 39% capacity factor Wandylaw is an outstanding project, and a great example of what we call an A‐grade asset: built in a very windy site, with first‐rate equipment and robust contractual structures”.
Dine Glasgow, COO of RidgeWind added: “Together with the 24.6MW Hall Farm project financed last December, this is the second project that RidgeWind closed in less than 6 months, raising project finance for GBP65m. This proves that good quality projects with strong sponsors like HgCapital and RidgeWind can raise finance and get built even in difficult markets”.
