Infrastructure Capital Group (ICG) is pleased to announce that it has successfully refinanced the debt of the Neerabup Power Station (Neerabup) with a 10.25 year, $252m senior debt facility.
Neerabup is a 330 MW open-cycle gas fired power station located in Western Australia, and which is jointly owned by the Energy Infrastructure Trust (EIT) and ERM Power Limited (ERM).
The new debt facility has been underwritten by National Australia Bank Limited and will be syndicated to institutional lenders in the Japanese life insurance market.
Craig Whalen, ICG Executive Director, noted that “Once again, we have been able to secure long-term financing at very competitive margins whilst taking advantage of historically low base interest rates. In doing so, not only has the project been de-risked, but significant value has been realised by EIT’s unitholders.”
The refinancing locks in a senior debt package until the end of Neerabup’s Tradeable Purchase Agreement with Synergy, the Western Australian Government’s electricity retail corporation.
Andrew Pickering, ICG Chairman and EIT Portfolio Manager, said “The transaction is the second refinancing ICG has taken to the Japanese market following that for Hallett 4 Wind Farm which was completed in 2018. Neerabup is, however, the first Australian gas-fired power station to target such a market for long-term senior debt.”
Other innovative financings completed by ICG include Mumbida Wind Farm (12-year bank debt), Hallett Hill No 2 Wind Farm (12-year USPP / Green Bond) and Wattle Point Wind Farm (10-year bank debt).
As a shareholder and management committee member of Neerabup, ICG congratulates all those involved in the transaction.
ICG and ERM acted as joint financial adviser for the transaction. EIT and ERM have jointly owned Neerabup since 2008 with ERM being the operator of the power station.