Linklaters advises Octopus on £344 million refinancing of UK onshore wind portfolio

Linklaters has advised Octopus Energy Investments (“OEI”), part of the Octopus Group and the largest non-utility investor in onshore renewables in the UK, on the successful completion of a £344 million refinancing of its UK onshore wind portfolio.

The refinancing incorporates a flexible ‘accordion’ and additional debt features which allows for further assets to be brought into the deal whilst also permitting the inclusion of unsubsidised assets in the portfolio. This provides the ability to transact quickly and competitively in key target territories across Europe allowing Octopus to continue to unlock investment in the transition to a world powered by renewables.

The portfolio of wind assets, which Octopus acquired on behalf of its investors in a series of transactions between 2015 to 2017, includes seven sites across England and Scotland. The projects have a combined generation capacity of 230MW and were previously financed with six separate facilities.
This is the third UK renewables portfolio financing that Linklaters has advised Octopus on, the first being the £485m refinancing of a 522MW portfolio of 74 ground-mounted solar photovoltaic assets in the UK and the second being the £174m refinancing of the largest independent portfolio of biomass and landfill gas projects, again in the UK. Linklaters have also advised Octopus on transactions in France, Italy and the Nordics.

Richard Coar, partner at Linklaters, says: “We are delighted to have worked together with Octopus again on the refinancing of another of their renewable portfolios. This latest transaction demonstrates that for the right asset class and the right sponsor, there is still appetite in the commercial bank market to deliver novel portfolio financing solutions tailored to meet sponsors’ needs.”

The team at Linklaters was led by partner Richard Coar and supported by Managing Associate Albert Yu and Associates Hugh Brannan, Sebastian Witte and Wilson Hill.