NextEnergy Solar Fund (NESF) announced that it has consolidated its two existing short-term RCFs into one facility, leading to an overall reduction in margin at attractive terms of 120bps over SONIA. The new consolidated facility combines the company’s existing RCF with Santander into its other RCF under a consortium of lenders Allied Irish Banks – London branch, NatWest, and Lloyds. The new combined RCF has the same aggregated commitment limit of £205m and includes two additional 12-month extension options at the company’s sole discretion to bring the maturity date up to June 2028. The company remains committed to the down payment of debt. As at 31 December 2024, it had down-paid a net amount of £46.3m of short-term debt through proceeds from its capital recycling programme, and repaid a cumulative amount of £60.4m of long-term amortising debt from operational cashflows.
Helen Mahy, chairwoman of NextEnergy Solar Fund, said:
“I am pleased to report a reduction in NextEnergy Solar Fund’s short-term revolving credit facility costs, as a result of the facility being consolidated at a market-leading rate of 120bps over SONIA. The company is making good progress reducing its total debt, and it is encouraging that NextEnergy Solar Fund continues to make operational efficiencies where possible to benefit its shareholders.”
Ross Grier, chief investment officer of NextEnergy Capital, commented:
“The revolving credit facility remains an important component of NextEnergy Solar Fund’s disciplined capital structure and provides immediate access to capital. This consolidated revolving credit facility helps to further simplify the company’s capital structure, and the reduction in the overall margin to 120bps over SONIA showcases the quality of assets within the NextEnergy Solar Fund portfolio and the continued lender appetite to finance solar projects with a trusted partner.”
[QD comment AC: The ongoing consolidation and reduction in leverage makes sense in our view, and should allow companies like NESF who still maintain considerable scale to capitalise on market weakness when conditions improve across the renewables space. ]
NESF: NextEnergy Solar Fund consolidates RCF as capital recycling programme takes shape
