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KUALA LUMPUR, Feb 23 — Tenaga Nasional Bhd’s (TNB) wholly-owned subsidiary Vantage RE Ltd has completed a 275 million-pound (RM1.56 billion) financing exercise through refinancing of its Vantage Solar UK (VSUK) portfolio of solar power plants in the United Kingdom (UK).
The financing facility with Macquarie Asset Management, arranged by Standard Chartered Bank, is part of Vantage RE’s management initiative to optimise VSUK’s financing structure and providing greater investment certainty over the longer term.
“The refinancing exercise has proven that the portfolio is able to meet the lender’s expectation on the environmental, social and governance (ESG) compliance through the portfolio’s performance, which is aligned with the European Union’s taxonomy for sustainable activities.
“The activity reinforces TNB’s journey in achieving its global ESG vision,” TNB president and chief executive officer Datuk Baharin Din said in a statement today.
The 365 MW solar portfolio, which comprises 24 ground-mounted solar photovoltaic plants located across England and Wales, makes an important contribution to the UK’s supply of clean energy, TNB said.
As estimated by Macquarie’s Green Investment Group, the portfolio produces enough electricity each year to power the equivalent of more than 90,000 homes while helping to avoid about 3,300 kilotonnes of carbon dioxide equivalent emissions over the remaining lifetime of the portfolio.
TNB said the refinancing exercise is another valuable contribution provided by Vantage RE to the solar portfolio under its management.
Since assuming management control of VSUK’s portfolio last year, the portfolio’s Ebitda (earnings before interest, taxes, depreciation and amortisation) performance has improved by about 28 per cent from £30.3 million (RM172.4 million) in 2020 to £38.7 million in 2021.
“TNB is confident under Vantage management, VSUK’s portfolio will grow in value and continue to provide acceptable returns to its investors,” the company said. — Bernama
