2 solar energy projects to receive $397m refinancing

15 May 2022 By Lauren Croft

Nexif Energy will refinance both the Lincoln Gap Wind Farm and Snapper Point Gas Power Station projects, in a deal worth $397 million.

Firm: Allens (Nexif Energy)

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Deal: Allens has advised the lenders to Nexif Energy on the $397 million portfolio project refinancing for the Lincoln Gap Wind Farm and Snapper Point Gas Power Station projects.

Value: $397 million

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Area: Energy and projects

Key players: The Allens team was led by partner Michael Ryan (pictured), with support from partner Tim Stewart, Lisa Zhou, Michelle Teng, Mark Hakeem, Naomi Lee and Daniel Schmoll.

Deal significance: The Lincoln Gap Wind Farm, located near Port Augusta in South Australia, will operate for the next 25 years with the capacity to power 155,000 homes across the state. The project will consist of 468 megawatts of wind turbines, including the fully operational 126-megawatt stage 1 component of the project, and an 86-megawatt stage 2 component of the project, which commenced generation in December 2021. A further stage is under development and the project also includes 10 megawatts of grid-scale battery storage.

Lead partner on the deal, Mr Ryan, said that this transaction represents an important and unique contribution to Australia’s energy transition landscape.

“Not only is the transaction a further development of the broader trend of sponsors utilising portfolio structures to optimise their capital, but it also offers valuable insights into structuring and financing considerations for combining a gas peaker and wind generation portfolio,” he said.

“In addition to the bespoke aspects of combining very different technologies and cash flow profiles, the transaction also had to be tailored to each project’s transitional phase between construction and operations, as well as the need to consolidate three separate existing debt facilities into one portfolio financing. We were really delighted to work with Nexif and its lenders KfW, SMBC and Westpac, to help achieve financial close on such a unique and complex transaction.”

2 solar energy projects to receive $397m refinancing
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