REG - Aquila Eur Renwables Aquila Euro Rnw-AERI - Spanish Solar PV Debt Financing

Aquila European RenewablesAnnouncement

08/01/2024 07:00

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20240108:nRSH8572Ya&default-theme=true

RNS Number : 8572Y  Aquila European Renewables PLC  08 January 2024

8 January 2024

 

Aquila European Renewables plc

 

Spanish Solar PV Debt Financing

 

Aquila European Renewables plc ("AER" or "the Company"), the London-listed
investment company advised by Aquila Capital Investmentgesellschaft mbH
("Investment Adviser"), today announces that it has entered into a EUR 50
million 1  (#_ftn1) , five-year non-recourse debt facility ("Debt Facility")
with ING Bank N.V. Sucursal en España. The Debt Facility is secured by AER's
wholly owned Spanish solar PV portfolio, which consists of 180 MWp of
unlevered operating assets supported by long-term contracted Power Purchase
Agreements.

 

The Debt Facility implies a conservative gearing level of approximately 26%
for the Spanish solar PV portfolio, based on fair values as at 30 September
2023. The Company has been able to secure the loan at attractive terms, with
an all-in interest rate below the existing revolving credit facility ("RCF").
Pricing terms of the Debt Facility remain confidential. 90% of the Debt
Facility is hedged via an interest rate swap over the life of the loan. The
Debt Facility is also partially amortising, with a balloon repayment at
maturity. The Debt Facility also benefits from an accordion option (EUR 18
million), as well as two twelve-month extension options, both of which are
subject to lender consent.

 

The Company intends to use the net proceeds from the Debt Facility to repay
the RCF, resulting in available capacity under the RCF of approximately EUR 70
million (current facility limit: EUR 100 million). As a result, the Company's
overall gearing level remains unchanged at approximately 34% of its Gross
Asset Value, as at 30 September 2023. The undrawn RCF capacity provides
significant flexibility for the Company going forward when considering future
capital allocation decisions, which may include the continuation of the share
buyback programme.

 

As announced in May 2023, this debt financing is one of a number of
initiatives identified by the Board to assist in securing recognition of the
value inherent in the portfolio. Further, the Board will continue to consult
with shareholders and, as announced on 22 December 2023, is considering
broader options for the future of the Company.

 

Ian Nolan, Chairman of AER, commented: "We are pleased to have secured the
debt financing at such attractive terms, fulfilling one of the key initiatives
announced in May 2023 prior to the Company's inaugural continuation vote. We
are working with our advisers to evaluate how the incremental capital can be
most appropriately allocated for the benefit of shareholders."

 

 

ENDS

 

For further details contact:

 

Media Contacts

Edelman Smithfield

Ged Brumby 07540 412301

 

 

 

Sponsor, Broker and Placing Agent

Numis Securities 020 7260 1000

Tod Davis

David Benda

 

Apex Listed Companies Services (UK) Limited (Company Secretary) 020 3327 9720

 

NOTES

 

About AER

The objective of Aquila European Renewables plc is to provide investors with
an attractive long-term, income-based return in EUR through a diversified
portfolio of onshore wind, solar PV and hydropower investments across
continental Europe and Ireland. As a result of the diversification of energy
generation technologies, the seasonal production patterns of these asset types
complement each other, providing a balanced cash flow profile, while the
geographic diversification serves to reduce exposure to any one single energy
market. In addition, a balance is maintained between government supported
revenues, fixed price power purchase agreements and market power price risk.
AER is targeting a dividend of 5.51 cents per share in relation to the
financial year ending 31 December 2023, with the aim of increasing this
dividend progressively over the medium term.

Further details can be found at: www.aquila-european-renewables.com
(http://www.aquila-european-renewables.com) .

 

LEI Number: 213800UKH1TZIC9ZRP41

 

About ING
ING is a global financial institution with a strong European presence,
offering banking services through ING Bank. ING Bank's purpose is to empower
people to stay one step ahead in life and business. ING Bank's more than
52,000 employees provide retail and wholesale banking services to customers in
more than 40 countries. ING Group shares are listed (in the form of
certificates of deposit) on the stock exchanges in Amsterdam (INGA NA,
ING.AS), Brussels and New York (ADRs: ING US, ING.N). Sustainability is an
integral part of ING's corporate strategy, as evidenced by the inclusion of
ING Group shares in the FTSE4Good and Dow Jones Sustainability indexes
(European and global), where the company is among the leaders in the banking
sector.

 

 1  (#_ftnref1) Excludes any ancillary debt facilities (debt service reserve
and letter of credit facilities)

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  MSCUVUBRSBUARAR