Octopus Renewables Infrastructure (ORIT) has successfully refinanced its portfolio of operational solar PV assets in France, which was acquired in July 2020.
ORIT notes that the new €125.7m fully amortising debt facility, provided by Allied Irish Banks p.l.c., Société Générale and La Banque Postale, extends the maturity date of the financing by over 5 years to December 2038 and significantly reduces ongoing interest costs. The facility has a margin of 1.25% above EURIBOR, which has been fixed at minus 0.12% for 85% of the facility value, leading to an all-in rate of 1.13%.
This new facility replaces the existing €99m of project finance which was acquired with the portfolio and of which €3.8m of principal had been repaid since the acquisition.
FY2020 dividend expected to be fully covered by operational cash flows
ORIT expects its FY2020 dividend to be fully covered by the operational cash flows generated by the underlying assets, prior to debt amortisation. However, it said that due to a short delay in completing the refinancing it is expected that dividend cover on a cash flow basis at the company level will be slightly impacted, in FY2020 only.
ORIT goes on to note that its portfolio continues to perform well with construction projects on schedule.
ORIT: Octopus Renewables Infrastructure announces new €125.7m fully amortising debt facility