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Greencoat Renewables buys Tipperary wind farm, closes €200m term loan


Greencoat has bought a wind farm in Tipperary. Stock image

Greencoat has bought a wind farm in Tipperary. Stock image

Greencoat has bought a wind farm in Tipperary. Stock image

Listed company Greencoat Renewables has bought An Cnoc wind farm in county Tipperary. 

The wind farm is made up of five Enercon E70 turbines that have been operational since March 2018.

The wind farm's revenues are contracted under the REFIT 2 (renewable energy feed-in tariff) scheme, providing a long-term guaranteed minimum floor price for the electricity generated until 2032.

Enercon will continue to manage the operations and maintenance contract.

The acquisition is being funded by the Greencoat's existing credit facility. Following completion of the deal, total borrowings will represent 45pc of Greencoat’s gross asset value.

The company has also completed a new €200m five-year term loan with a syndicate of three banks, Commonwealth Bank of Australia, National Australia Bank and Natwest.

The loan will be used to pay down some of the existing revolving credit facility (RCF), leaving the RCF drawn at circa €115m.

Over time and in line with its strategy, the company said it may add additional term loan facilities “in order to more efficiently maintain its long-term target leverage.”

Bertrand Gautier, partner at Greencoat Capital, the investment manager, said: "We have now established a new term loan facility with a syndicate of three relationship banks to provide depth to our capital structure in line with our leverage strategy.

We are very pleased with the terms of the facility, and the acquisition flexibility that it will provide."

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