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Standard Chartered arranges £275 million refinancing agreement to facilitate significant solar energy power in the UK

on 23 Feb 2022

23 February 2022, London, UK – Standard Chartered Bank announces a £275 million project refinancing arrangement for Vantage RE Ltd, the wholly-owned subsidiary of Malaysian multinational power utility company Tenaga Nasional Berhad, and Macquarie Asset Management to supply solar power to the UK.

The agreement allows Vantage RE Ltd, a renewable energy investment and asset management platform, to refinance the existing shorter tenor debt facilities of its majority-owned subsidiary Vantage Solar UK Ltd (VSUK), which owns a 365 MW solar portfolio for generating electricity. It provides long-term fixed rate funding helping to give VSUK long-term stability of funding at optimised costs and enhance shareholder returns. Standard Chartered acted as Sole Arranger and Bookrunner, and global asset manager Macquarie Asset Management (on behalf of a group of its institutional clients) is the Sole Lender to VSUK. This refinancing comes at a time when renewable electricity is playing a key part in the UK’s energy mix and critical to meeting the country’s net zero targets.  

The solar portfolio comprises 24 operational solar photovoltaic farms, which are ground mounted and located across England and Wales.  As one of Britain’s largest solar power portfolios, it contributes significantly to the supply of clean energy. The solar parks collectively produce enough electricity each year to power the equivalent of more than 90,000 homes and help to avoid approximately 3,300 kilotonnes of carbon dioxide equivalent emissions over the remaining lifetime of the portfolio[1]. The plants have been operational for over seven to nine years and are ROC-accredited.

The portfolio aligns with the European Union’s (EU) taxonomy’s sub-theme of generation of energy from renewable resources. The EU taxonomy is a system to classify which parts of the economy can be marketed as sustainable investment. Additionally, the transaction reinforces Standard Chartered’s commitment to mobilise capital for renewable energy that align to the Bank’s Green and Sustainable Product Framework.    

Fathima Hussain, Managing Director, Project & Export Finance, Standard Chartered Bank, said: “Standard Chartered has a proven track record of arranging bespoke specialised financing solutions for large-scale renewable energy projects. We are proud to work in partnership with Tenaga Nasional Berhad, Vantage Solar and Macquarie Asset Management, using our expertise in mobilising long-term capital to support our footprint clients with their investments both domestically and in international markets, and help them achieve their sustainability goals.”  

Vian Davys, CEO at Vantage RE, said: “This refinancing represents a major milestone for the shareholder’s portfolio, for which Macquarie and Standard Chartered have provided good collaboration and support throughout the process. This new debt package provides us with greater certainty with regard to the delivery of our long-term investment and asset management strategy, in line with TNB’s aspiration to be a leading sustainable energy solutions provider.”

The financing follows other recent European renewables projects in which Standard Chartered participated, underscoring the Bank’s growing activity in the region, such as the GBP 5.5 billion project financing of the Dogger Bank offshore wind farm in the UK[2] and the EUR 2 billion Courseulles-sur-Mer offshore wind farm in France[3]. Standard Chartered has supported numerous clients with long-term project financing, advisory and market risk mitigation instruments for renewables and clean tech projects globally, delivering debt commitments to date in excess of USD 5,490 million.

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For further information please contact:

Claire Newell

Senior Communications Manager, Europe

Standard Chartered Bank

Tel: +44 (0)207 885 8857

Email: Claire.newell@sc.com

Standard Chartered

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About Tenaga Nasional Berhad

Tenaga Nasional Berhad (TNB) is a leading Malaysian utility company in Asia with an international presence in the United Kingdom, Kuwait, Turkey, Saudi Arabia, Pakistan and India. Within the renewable energy space, December 2021, TNB has a total portfolio of 2,771.4MW in Malaysia (including 2,536.1MW of large hydro) and 708.1MW across the UK, Turkey and India comprising mainly solar, wind and hydro energy generation assets. Website: www.tnb.com.my

About Vantage RE Ltd

Vantage RE Ltd. (Vantage RE), a wholly owned subsidiary of TNB has been established to own, operate and manage a portfolio of renewable energy assets in the United Kingdom and Europe. Headquartered in London, Vantage RE’s portfolio consists of solar, onshore and offshore wind assets and today, it has a total of capacity of c.450MW.

[1] Data provided by the Green Investment Group.

[2] Project Finance International 2020 awards, page 15.

[3] Project Finance International 2021 awards, page 100.