Albion Capital has refinanced Albion Community Power, a GBP105 million renewable energy portfolio, by raising GBP57 million of debt across the portfolio of onshore wind, hydro, solar and battery projects.The successful refinancing demonstrated Albion’s ability to raise, deploy and return institutional funds within a five year period. The portfolio of FIT and ROC wind, hydro, rooftop solar and battery storage projects delivered unlevered returns of 15-20 per cent for shareholders; more than 30 per cent above the target returns.
The refinancing required raising long-term, non-recourse, institutional, RPI-linked debt from funds managed by Aberdeen Standard Investments. The debt was secured against the portfolio which included refurbished turbines. Albion Capital was advised by IDCM and Burges Salmon, and Aberdeen Standard Investments was advised by Everoze and Osborne Clarke.
David Gudgin, Partner at Albion Capital, says: “Albion Community Power introduced institutional investors to the Albion brand for the first time, and we are pleased to have delivered such a good result for our shareholders. Moving forward, the ACP fund continues to invest in renewable energy assets and we are keen to add further institutional investors targeting long term, uncorrelated, RPI-linked cash flows alongside our existing LPs.
“Both IDCM and Burges Salmon were invaluable as advisors in achieving the refinancing and added value at each stage of the refinancing our diversified portfolio of hydro, wind and solar assets.”