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AEnergy & Infrastructure in the UK
Energy & Infrastructure in the UK
CHALLENGES & OPPORTUNITIES
In association with
1Energy & Infrastructure in the UK
CONTENTS
A YEAR INTO PERSPECTIVE
UK RENEWABLE ENERGY M&A REVIEW
UK RENEWABLE ENERGY PUBLIC MARKETS REVIEW
2
7
10
2 Energy & Infrastructure in the UK
A YEAR INTO PERSPECTIVE
2013 represented an inflection point for the energy and infrastructure business at least from a credit markets perspective. Despite a relatively modest, 2.4%, global economic growth rate1, project finance volumes increased by 53% to $280 billion up from $186 billion in 20122. Europe was capable of bringing an end to the free-fall trajectory initiated in 2010 which coupled a sovereign and banking crisis resulting in an overall reduction in the number of projects and lack of credit supply.
It is only possible to appreciate how the competitive landscape
has evolved when we look a few years back and we compare that memory with what this process of creative destruction has made of the energy and infrastructure industry. Borrowing the term from Infranews’ Michael Dunning, pluralism is probably the best way to define the current state of Infrastructure Finance 2.0 where good old fashioned commercial banks have learned to (peacefully?) cohabitate with a myriad of alternative sources of funding ranging from government sponsored vehicles (EIB, GIB, ECAs,…) to the uprising of the institutional investors either in a public or private format.
Like with any reactive movement, under the pressure of increased competition some of our peers have decided to swing back to what they used to do best in the pre-crunch period and re-enter the long-dated financing market. A few others, including ourselves, have started to adapt their business model to the new funding wave, which has been further fuelled by the ultra dovish macro policy that prevails across both sides of the Atlantic.
Borrowers have moved quickly (and rightly) to benefit from this benign environment replacing their exposure to banks’ balance sheet by
1 World Bank2 Infrastructure Journal (2013), “2013: Global Infrastructure Market Review: Executive Summary”
3Energy & Infrastructure in the UK
longer-term and cheaper third party debt. A number of the 2005-2008 infrastructure vintage acquisitions accessed the debt capital markets for the first time last year receiving a warm welcome by institutional investors and demonstrating the soundness of this asset class.
Both Arqiva and Brussels airport are good examples of this trend. Having gone through an initial process of privatization largely funded by banks and private equity, they both successfully refinanced their original acquisition facilities last year through a combination of bonds and term loans which eventually will end up in the capital markets as well. Santander was one of the lead banks in the refinancing of both transactions playing a key role across a number of product areas including hedging, lending and DCM.
One accomplishment we feel particularly proud of and that characterizes the direction of travel that Santander has taken, was our recent role as Joint Bookrunner and inflation hedging bank in the Greater Gabbard OFTO; the first UK off-shore electricity transmission operator to access the public bond markets and the first one to receive the benefit of the EIB credit enhancement product under its Project Bond initiative. Our
combined infrastructure finance structuring skills together with our capital markets distribution capabilities delivered an extremely competitive pricing that has set a clear precedent as to how transactions of this nature will be financed (and priced) in the future. Low cost of debt, reduced cost to electricity users, two awards and 3 happy customers, a great transaction overall.
But please don’t take us wrong. We are still open for business and ready to deploy our balance sheet whenever the opportunity deserves it. It is just simply a fact that high investment grade, long term maturing assets are probably best placed with pension funds and insurance companies than with commercial banks which fund themselves from short-term deposits provided by small savers. Playing the carry trade game with the yield curve is, and will always be, a temptation especially when equity markets start flourishing and the pressure to deliver results increases.
Perhaps that is the reason why renewables remains a particularly interesting sub-segment. The limited operational life of the assets and the lack of enthusiasm of large utilities in providing long-term PPAs have traditionally skewed the loan maturity curve towards its shorter end. On the other hand, quite often we have contained our eagerness as regulatory change, even when governments play fairly and provide sufficient notice, tends to cause sustained periods of investment stagnation. In that sense, the uncertainty introduced by the prospect of a competitive allocation process for CfDs in the UK (to which the rest of the EU is likely to follow charge) may stall all the progress that has been made since the Electricity Market Reform was launched.
In that sense, despite the clamouring protests from different industry
groups and amidst the political trilemma of affordability, security of supply and carbon reduction, the UK remained a solid bastion for the renewable energy sector in 2013 having received US$7.2 billion3 of new-build investment, just behind the United States and China and ranking 5th globally in terms of attractiveness for investment. We remain confident in the ability of the UK to turn its way around and maintain a stable regulatory framework in line with its 2020 targets. In the meantime, and while keeping an eye on what our politicians are about to do, we will continue to make significant contributions to this sector such as our Mandated Lead Arranger role in the pre-IPO Infinis’ onshore wind portfolio refinancing; one of the largest portfolio financings in the UK to date and the most significant transaction in this space in 2013.
On the equity side, Santander continues to grow its investments in UK renewable energy projects. Over the last 18 months, the bank has invested in 7 wind and solar
Playing the carry
trade game with the
yield curve is, and will
always be, a temptation
especially when equity
markets start flourishing
and the pressure to
deliver results increases.
In the short term, we
are focused on acquiring
further onshore wind
and solar projects that
are already consented
and can be built and
grid connected within
the ROC regime, while
our longer-term strategy
will be influenced by
the outcome of the next
general election.
4 Energy & Infrastructure in the UK
projects totalling 155MW of installed capacity. This has included 65MW of onshore wind capacity in partnership with Blue Energy, as part of the Ridgewind acquisition. On the solar PV side we have invested in 60MW with British Solar Renewables and 30MW with Lark Energy.
In the short term, we are focused on acquiring further onshore wind and solar projects that are already consented and can be built and grid connected within the ROC regime, while our longer-term strategy will be influenced by the outcome of the next general election. In addition, we are maintaining a close review of the UK offshore wind market.
Beyond energy, at the moment it is a bit difficult to get excited with the prospects of greenfield infrastructure arena. No doubt Thames Tideway Tunnel, HS2, Heathrow’s third runway against Gatwick’s second and the conversion of the Highways Agency into a regulated utility-
style company will continue to the fill the pages of newspapers and specialized press, but in terms of action we can keep reading… According to HM Treasury4 annual infrastructure investment averaged £45 billion in the 2011-2013 period, approximately 60% of which was funded by the public sector or on-balance sheet whereas the remaining 40% used other private sector solutions such as project finance. With the extension of the UK Guarantees Scheme (UKGS) through December 2016, the task of discerning that 40% from the 60% has all of a sudden become more complicated. Only when the erratic flow of projects in the £375 billion infrastructure “pipeline” makes its way into pre-financing stages we will start to comprehend to what extent this is only a G2G (government to government) discussion and if at all we will be required.
On a more positive tone, low interest rates and growth finally returning to
Europe should help build confidence and boost the M&A cycle. Airports, offshore wind farms, regulated utilities, electricity transmission and rail have captured the attention of foreign capital over the past few years, particularly from the Middle and Far East as well as from North America. Problem is, if you sell now what are you going to do with that extra cash? Certainly some of the first round of infrastructure funds are coming to a close and should start winding down their portfolios whereas utilities remain particularly capital constrained. Hopefully that will keep us busy, at least, for the next 12 months. Amen.
In closing, we would like to thank you for attending our first Energy & Infrastructure drinks reception which we hope you enjoy and we would like to show our gratitude for helping us to achieve all these milestones and allowing us to contribute to your own past and future success stories.
3 Ernst & Young (2014): Renewable Energy Country Attractiveness. 2 HM Treasury (2013): National Infrastructure Plan
5Energy & Infrastructure in the UK
SELECTED ENERGY & INFRASTRUCTURE CREDENTIALS
PorterbrookRefinancing
GBP 1,150,000,000MANDATED LEAD ARRANGER & BOOKRUNNER
GatwickRefinancing of RCF and Liquidity Facilities
GBP 400,000,000MANDATED LEAD ARRANGER & BOOKRUNNER
ArqivaRefinancing of bank facilities and
swap portfolio re-structuring
GBP 2,636,000,000MANDATED LEAD ARRANGER & BOOKRUNNER
Project CumulusOnshore wind portfolio refinancing
GBP 340,000,000MANDATED LEAD ARRANGER
Greater Gabbard plcFirst UK project bond using the
EIB credit enhancement
GBP 305,000,000JOINT BOOKRUNNER
Welcome BreakRefinancing
GBP 221,000,000MANDATED LEAD ARRANGER
Buckinghamshire EfWBridge to Construction
GBP 200,620,542MANDATED LEAD ARRANGER
Project BellevueRefinancing
EUR 1,640,000,000MANDATED LEAD ARRANGER & BOOKRUNNER
E.ON WasteAcquisition
EUR 612,000,000MANDATED LEAD ARRANGER
Project AprilSmart Meter CommHubs Financing
GBP 32,000,000MANDATED LEAD ARRANGER
15 MW Solar PV PortfolioChurchtown, Manor Farm & East Langford
PROJECT ARRANGER & EQUITY INVESTOR
45 MW Onshore Wind FarmsHall Farm & Wandylaw
PROJECT ARRANGER & EQUITY INVESTOR
20.7 MW Onshore Wind FarmMiddlewick
PROJECT ARRANGER & EQUITY INVESTOR
31.6 MW Solar PV plantBroxted
PROJECT ARRANGER & EQUITY INVESTOR
57 MW Solar PV PortfolioPenare, Parley Court & Egmere
PROJECT ARRANGER & EQUITY INVESTOR
DEBT ARRANGEMENT
UK, 2014
UK, 2013
UK, 2013
UK, 2013
UK, 2013
UK, 2014
UK, 2013
BELGIUM, 2013
UK, 2012
UK, 2013
UK, 2013
UK, 2013
GERMANY, 2013
UK, 2013
UK, 2013
DEBT ARRANGEMENT
DEBT ARRANGEMENT
DEBT ARRANGEMENT
EQUITY INVESTMENT
DEBT ARRANGEMENT
DEBT ARRANGEMENT
DEBT ARRANGEMENT
EQUITY INVESTMENT
EQUITY INVESTMENT
DEBT ARRANGEMENT
DEBT ARRANGEMENT
DEBT ARRANGEMENT
EQUITY INVESTMENT
EQUITY INVESTMENT
6 Energy & Infrastructure in the UK
7Energy & Infrastructure in the UK
UK RENEWABLE ENERGY M&A REVIEW
RENEWABLE ENERGY M&A ACTIVITY IN THE UKDeal value ($ billion)
Source: Clean Energy Pipeline
Number of deals
1Q14
4Q13
3Q13
2Q13
1Q13
4Q12
3Q12
2Q12
1Q12
4Q11
3Q11
2Q11
1Q11
0
5
10
15
20
25
30
35
1Q14
4Q13
3Q13
2Q13
1Q13
4Q12
3Q12
2Q12
1Q12
4Q11
3Q11
2Q11
1Q11
0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
DEA
L V
ALU
E ($
BIL
LIO
N)
NU
MB
ER O
F DEA
LS
$1.9 BILLIONOF UK M&A ACTIVITY TOOK PLACE IN THE ONSHORE WIND SECTOR BETWEEN 1Q13 AND 1Q14
Some 95 renewable energy M&A transactions valued at $4.6 billion were announced in 2013, more than double the 44 deals totalling $2.2 billion recorded in 2012. This trend has continued in the beginning of 2014 - 28 M&A transactions valued at $2.4 billion were announced in the UK in 1Q14, making it the most active quarter by deal value in the past three years.
This surge in M&A activity was caused by three factors - the emergence of YieldCos as active acquirers of operating onshore wind and solar PV assets, continuance of strong interest amongst institutional investors to acquire large portfolios of renewable energy assets, and the sale of stakes in large offshore wind farms by utilities.
8 Energy & Infrastructure in the UK
INSTITUTIONAL INVESTORS DOMINATE THE M&A LANDSCAPE
Institutional investors, including pension funds, insurance companies and Japanese trading houses, accounted for only 9% of the number of acquisitions announced in 2013 and 1Q14, but 50% of the total value of announced deals. Institutional investors find renewable energy projects attractive because they offer yields that are more attractive than government bonds and other traditional asset classes in the current low-yield environment. Some recent notable renewable energy acquisitions by institutional investors are highlighted in the table above.
Notably, the UK is an attractive target for institutional investors around the world, including Scandinavian pension funds such as PensionDanmark, Japanese trading houses like Mitsubishi and Marubeni, and Canadian life insurance company La Caisse de dépôt et placement du Québec. In the UK, institutional investors have primarily invested in offshore wind farms and large portfolios of onshore wind assets that enable them to deploy large sums of capital at once.
YIELDCOS ENTER THE FRAY
M&A activity was also boosted in 2013 by the emergence of YieldCos, which are publically listed infrastructure investment funds that offer investors a fixed dividend based on the returns from investments in operating renewable energy assets. YieldCos were the most active acquirers in terms of deal numbers in 2013 and 1Q14, accounting for 28% of all announced M&A transactions, followed by corporates (27%) and private equity and infrastructure funds (18%). YieldCos were the second most active
Target Stake acquired Enterprise value Acquirer(s) Date announced
210 MW Westermost Rough offshore wind farm
50% £480 million Marubeni, UK Green Investment Bank
Mar-14
576 MW Gwynt y Môr offshore wind farm
10% £2.2 billion UK Green Investment Bank Mar-14
630 MW London Array offshore wind farm
25% £2.6 billion La Caisse de dépôt et placement du Québec
Jan-14
273 MW onshore wind portfolio of Falck Renewables
49% £451 million PensionDanmark Dec-13
London Array phase one transmission project
100% £459 million Mitsubishi Corp, Barclays Infrastructure Funds
Sep-13
NOTABLE UK RENEWABLE ENERGY ACQUISITIONS BY INSTITUTIONAL INVESTORS
Source: Clean Energy Pipeline
Source: Clean Energy Pipeline
Source: Clean Energy Pipeline
UK M&A ACTIVITY BY ACQUIRER TYPE AS A PERCENTAGE OF DEAL VALUE
UK M&A ACTIVITY BY ACQUIRER TYPE AS A PERCENTAGE OF DEAL NUMBERS
1Q13-1Q14
1Q13-1Q14
Utility / IPP
Private equity / infrastructure fund
Corporate
YieldCo
Institutional investor
50%
23%
15%
7%5%
Utility / IPP
Private equity / infrastructure fund
Corporate
YieldCo
Institutional investor
50%
23%
15%
7%5%
Institutional investor
Utility / IPP
Private equity / infrastructure fund
Corporate
YieldCo
28%
27%18%
18%
9%
Institutional investor
Utility / IPP
Private equity / infrastructure fund
Corporate
YieldCo
28%
27%18%
18%
9%
9Energy & Infrastructure in the UK
investors in terms of the value of announced M&A deals, accounting for 23% of total deal value. The first YieldCo, Greencoat UK Wind, listed on the London Stock Exchange in March 2013, meaning no YieldCos announced renewable energy acquisitions before 2013.
A table outlining the acquisitions made by each of the six YieldCos currently in the market is included on page 9 of this report.
LARGE OFFSHORE WIND TRANSACTIONS BOOST DEAL ACTIVITY
The surge in UK renewable energy M&A activity was also a direct result of a series of large offshore wind deals. Acquisitions of offshore wind generation and transmission assets accounted for 48% of the total value of renewable energy activity in the UK in 2013 and 1Q14, but only 8% of the number of announced deals. Offshore wind M&A activity is being fuelled by the desire of utilities to bolster their balance sheets and recycle capital into new offshore wind investments. The most notable acquisitions of UK offshore wind farms are outlined in the table below.
Aside from offshore wind, there was also a significant number of acquisitions of onshore wind generation assets since the start of 2013. Some 34 onshore wind projects, or portfolios of projects, valued at $1.9 billion were acquired in 2013 and 1Q14, representing 28% of the total number of deals. According to deals tracked by Clean Energy Pipeline, operating UK onshore wind assets were acquired for an average of £1.7 million per MW during 2013.
Source: Clean Energy Pipeline
Source: Clean Energy Pipeline
Source: Clean Energy Pipeline
UK M&A ACTIVITY BY SECTOR AS A PERCENTAGE OF DEAL VALUE
UK M&A ACTIVITY BY SECTOR AS A PERCENTAGE OF DEAL NUMBERS
1Q13-1Q14
1Q13-1Q14
Target Stake acquired
Enterprise value
Acquirer(s) Date announced
210 MW Westermost Rough offshore wind farm
50% £480 million Marubeni, UK Green Investment Bank
Mar-14
576 MW Gwynt y Môr offshore wind farm
10% £2.2 billion UK Green Investment Bank
Mar-14
630 MW London Array offshore wind farm
25% £2.6 billion La Caisse de dépôt et placement du Québec
Jan-14
580 MW Race Bank offshore wind farm
100% £50 million Dong Energy Dec-13
London Array phase one transmission project
100% £459 million Mitsubishi Corp, Barclays Infrastructure Funds
Sep-13
Sheringham Shoal transmission project
100% £193 million Macquarie Capital Group Ltd, Barclays Infrastructure Funds
Jun-13
90 MW Rhyl Flats offshore wind farm
50% £230 million UK Green Investment Bank, Greencoat UK Wind
Mar-13
NOTABLE UK OFFSHORE WIND M&A DEALS
Supply chain
Offshore wind transmission assets
Onshore wind generation assets
Offshore wind generationassets
76%
43%
35%
20%
2%
Wind
19%Solar
Other
5%
Offshore wind transmission assets
Offshore wind generationassets
Supply chain
Onshore wind generationassets
44%66%
16%
14%
4%
Wind
43%Solar
9%Biomass
Other
6%
10 Energy & Infrastructure in the UK
UK RENEWABLE ENERGY PUBLIC MARKETS REVIEW
UK RENEWABLE ENERGY PUBLIC MARKETS DEAL ACTIVITY Deal value ($ million)
Source: Clean Energy Pipeline
0
100
200
300
400
500
600
700
800
1Q14
4Q13
3Q13
2Q13
1Q13
4Q12
3Q12
2Q12
1Q12
4Q11
3Q11
2Q11
1Q11
4Q10
3Q10
2Q10
1Q10
DEA
L V
ALU
E ($
BIL
LIO
N)
$1.8 BILLIONWAS SECURED BY UK RENEWABLE ENERGY COMPANIES ON THE PUBLIC MARKETS IN 2013
UK renewable energy public markets activity rebounded in 2013 following a fallow three years. UK renewable energy companies secured $1.8 billion through IPOs and secondary offerings in 2013, a significant increase on the $25 million secured in 2012 and $185 million in 2011. This trend looks to be continuing this year, with UK companies raising $289 million on the public markets in 1Q14 alone.
The recent increase is a direct result of the emergence of YieldCo vehicles, which accounted for 82% ($1.7 billion) of all funds raised by UK renewable energy companies in 2013 and 1Q14. YieldCos have proved attractive to investors as they offer
11Energy & Infrastructure in the UK
an inflation-linked yield that, in the current low-interest environment, is more attractive than mainstream fixed income instruments such as bonds. Indeed all YieldCos offer initial yields of 6% or more. The investment strategies of the six YieldCos currently listed in the UK – Greencoat UK Wind, TRIG, Foresight Solar Fund, Bluefield Solar Income Fund, John Laing Environmental Assets Group and NextEnergy Solar Fund are outlined in the table below.
Recent YieldCo listings indicate that investor appetite for these structures may be waning. The £85.6 million raised by NextEnergy SolarFund in April 2014, the most recent YieldCo IPO, was at the minimum end of its range for the offering, which had targeted up to £150 million when it was announced in January. In addition, the £150 million that Foresight Solar Fund raised through its IPO in October 2013 was £50 million less than the £200 million it initially targeted, while an £83 million secondary offering by Greencoat UK Wind in December 2013 was £50 million short of a targeted £135 million goal.
The only non-YieldCo IPO in 2013 was executed by Infinis Energy, owner of the largest renewable energy portfolio in the UK. In November 2013, private equity fund Terra Firma raised £234 million through floating a 30% stake in the company on the London Stock Exchange.
Source: Clean Energy Pipeline
Source: Clean Energy Pipeline
UK RENEWABLE ENERGY PUBLIC MARKETS DEAL ACTIVITY BY ISSUER TYPE
UK RENEWABLE ENERGY PUBLIC MARKETS DEAL ACTIVITY BY DEAL TYPE
1Q13-1Q14
1Q13-1Q14
NOTABLE EUROPEAN YIELDCO FUNDS
GREENCOAT UK WIND Total funds raised: £345 million
Description Asset portfolio
Greencoat UK Wind raised £260 million through an IPO on the London Stock Exchange in March 2013, and a further £83 million through a secondary offering in December 2013. Greencoat UK Wind mainly invests in operating onshore and offshore wind farms in the UK with a capacity of over 10 MW. No more than 40% of its portfolio will comprise offshore wind, and no wind farm will be acquired if the acquisition price is over 25% of the total portfolio value. The company seeks to acquire 100%, majority or minority interests in wind farms.
UK: 161.55 MW onshore wind portfolio (Braes of Doune - 36 MW, Tappaghan - 28.5 MW, Middlemoor - 26.5 MW, Little Cheyne Court - 24.5 MW, Cotton Farm - 16.4 MW, Earl’s Hall Farm - 10.25 MW, Bin Mountian - 9 MW, Carcant - 6 MW, Lindhurst - 4.4 MW)
UK: Rhyl Flats offshore wind farm - 22.5 MW.
Target dividend per share: 6%
THE RENEWABLES INFRASTRUCTURE GROUP (TRIG) Total funds raised: £376 million
Description Asset portfolio
TRIG invests in operational renewable energy projects in the UK and Northern European countries. In July 2013, the company raised £300 million through an IPO on the London Stock Exchange. The fund primarily invests in onshore wind and solar PV projects, and limits investment in other forms of energy technology, such as biomass and offshore wind, to 10% of portfolio value. No more than 50% of the fund will be invested in projects outside the UK, and no single asset will account for more than 20% of the portfolio. TRIG will typically acquire majority stakes.
UK: 173.3 MW onshore wind farm portfolio (Hill of Towie - 48.3 MW, Altahullion - 37.7 MW, Green Hill - 28 MW, Roos - 17.1 MW, The Grange - 14 MW, Lendrums Bridge - 13.2 MW, Lough Hill - 7.8 MW, Forss - 7.2 MW)
UK: 57.5 MW solar PV portfolio (Parsonage - 7 MW, Churchtown - 5 MW, East Landford - 5 MW, Manor Farm - 5 MW, Marvel Farms - 5 MW, Tamar Heights - 11.8 MW, Stour Fields - 18.7MW)
Republic of Ireland: 9.9 MW onshore wind portfolio (Milane Hill - 5.9 MW, Beennageeha - 4 MW)
France: 73.2 MW onshore wind farm portfolio (Haut Languedoc - 29.9 MW, Haut Cabardes - 20.8 MW, Cuxac Cabardes - 12 MW, Roussas-Claves - 10.5MW)
France: Puits Castan solar PV project - 5 MW)
Target dividend per share: 6%
IPPYieldCo82% 18%
SecondaryIPO92% 8%
12 Energy & Infrastructure in the UK
FORESIGHT SOLAR FUND Total funds raised: £150 million
Description Asset portfolio
Foresight Solar Fund raised £150 million through an IPO in October 2013. The company typically invests in operational solar power plants in the UK. The company will limit investments in non-UK projects and construction-stage assets to a maximum of 25% of the fund’s gross asset value. The fund will acquire both majority and minority stakes in projects. No single investment will comprise more than 30% of the portfolio value.
UK: 110.5 MW solar PV portfolio (Wymeswold - 32.2 MW, Castle Eaton - 17.8 MW, Pitworthy 16MW, Highfields - 12.2 MW, Hunters Race - 10.7MW, High Penn - 9.6 MW, Spriggs Farm - 12 MW)
Target dividend per share: 6%
BLUEFIELD SOLAR INCOME FUND Total funds raised: £143 million
Description Asset portfolio
Bluefield Solar Income Fund raised £130 through an IPO in July 2013. It invests in solar PV projects in the UK. The company primarily acquires majority stakes, but will also make minority investments. The company may leverage short-term debt finance to facilitate acquisitions, but short-term debt will not exceed 50% of the gross asset value. No single investment will represent more than 25% of the fund’s net asset value.
UK: 111 MW solar PV portfolio (Swindon - 19 MW, Hill Farm - 15.19 MW, Hardingham - 14.84 MW, Kent - 11 MW, Gossewillow - 10.8 MW, North Beer - 6.87 MW, Hampshire, Norfolk & Glamorgan - 33MW)
Target dividend per share: 7%
JOHN LAING ENVIRONMENTAL ASSETS GROUP Total funds raised: £160 million
Description Asset portfolio
John Laing Environmental Assets Group (JLEN) raised £160 million through an IPO on the London Stock Exchange in March 2014. Upon completion of the IPO, it completed the acquisition of seven environmental infrastructure assets, six from the John Laing Group. John Laing Investments Ltd holds 39.7% of the voting rights attached to the share capital of the company. Unlike other YieldCos, JLEN will invest in waste and waste water PFI assets alongside renewable energy.
UK: 44.4 MW onshore wind farm portfolio (Hall Farm - 24.6 MW, Bilsthorpe - 10.2 MW, Castle Pill and Ferndale - 9.6 MW)
UK: 24.5 MW solar PV portfolio (Amber Solar Park - 9.8 MW, Branden Solar Project - 14.7 MW
UK: Waste Treatment Portfolio (D&G Waste, ELWA Waste)
Target dividend per share: 6%
NEXTENERGY SOLAR FUND Total funds raised: £85.6 million
Description Asset portfolio
NextEnergy Solar Fund raised £85.6 million through an IPO on the London Stock Exchange in April 2014. It will primarily target UK solar PV assets. According to Director Michael Bonte-Friedheim, the first £85.6 million will be used to acquire eight UK solar projects.
Undisclosed
Target dividend per share: 6.25% (5.25% for the year ending 31/03/2015)
NOTABLE EUROPEAN YIELDCO FUNDS (CONTINUED)
13Energy & Infrastructure in the UK
KEY CONTACTS
HARRY BRIGHT
Head of Financing Solutions & Advisory UK
T: +44 207 756 5696
M: +44 7786 037 290
ALEJANDRO CIRUELOS
UK Head of Project & Acquisition Finance
T: +44 207 756 6335
M: +44 7765 250 528
OLIVER ALEXANDER
UK Head of Asset & Capital Structuring
T: +44 207 756 4843
M: +44 7713 560 187
14 Energy & Infrastructure in the UK
www.santander.com