Dublin-based renewable energy group Gaelectric has agreed in excess of EUR90m in additional financing for its business.
Gaelectric, with its team of 50 employees, is active in the development and operation of wind and energy storage projects in Ireland, the US and the UK.
BlueBay Ireland Corporate Credit, a vehicle established by BlueBay Asset Management with substantial investment from the National Pensions Reserve Fund of Ireland to provide loans to larger SMEs and mid-sized corporates, is providing EUR30m in business development and expansion funding, which will be available to support the growth of all aspects of Gaelectric's business.
German landesbank, Nord/LB, is providing a EUR56m (GBP47m) project debt facility to finance the build out of Gaelectric's 42 MW wind farm at Dunbeg, Co. Derry/Londonderry. Dunbeg has a grid connection and full planning approval. Site preparation works commenced earlier this year.
Dunbeg will be the third operating wind farm delivered by Gaelectric following operating projects at Skrine in Co. Roscommon (2011) and Carn Hill (2013). Commercial operation of Dunbeg is planned to commence by in August 2014. Nord/LB also participated in the funding round concluded by Gaelectric earlier this year.
Proventus Capital Partners has increased its existing portfolio finance facility with Gaelectric by EUR6m.
The announcement follows the conclusion of a previous funding round which raised EUR65m in debt finance earlier this year for the development of its near-term pipeline of 165MW of wind energy projects in Ireland.
Gaelectric recently formed an alliance with international engineering firm Dresser-Rand to develop bulk energy storage projects using compressed air energy storage (CAES) technology commencing with Gaelectric's CAES project near Larne, which is the most advanced project of its type in Europe.
Gaelectric chief executive Brendan McGrath says: "Our progress in 2013 has been rapid, on both the corporate/funding side and on the project development/operations side of our business. This additional funding will allow us maintain the momentum we have created through next year and focus on our project milestones which ultimately create the value for our partners and investors.”
BlueBay's Pat Walsh says: "Gaelectric is an exciting story in the renewable energy and energy storage sector. With a strong platform in Ireland this business has the ability to significantly expand and to leverage its expertise in pursuit of further opportunities in Ireland, the UK, across Europe and in the US. This is the second loan that BICC has completed since its launch in July with discussions ongoing with a number of other mid-size companies."
