AUD 1.4B Debt Tranche For Neoen RE Portfolio Expansion In Australia
Source：taiyangnews
The new tranche to cover financing of 1.3 GW energy projects, including 3 solar plants
Including the first tranche Neoen raised in February 2024, the total funding now amounts to over AUD 2 billion, and is backed by a portfolio of 2.9 GW capacity, including solar, wind and storage projects. (Illustrative Photo; Photo Credit: Geniusksy / Shutterstock)
Key Takeaways
- With this debt tranche, Neoen has more than doubled the amount of its financing
- This tranche supports 1.3 GW of solar, wind and storage projects, including 3 new assets
- This financing positions Neoen to raise additional debt for future projects.
French renewable energy independent power producer (IPP) Neoen has closed a new AUD 1.4 billion debt tranche. Backed by a portfolio of renewable energy assets in Australia, the company has more than doubled the amount of its financing with this debt tranche.
Speaking about the transaction, Jean-Christophe Cheylus, Managing Director of Neoen Australia, said: “We are very pleased to announce today the closing of the second tranche of this financing of our portfolio of assets and we sincerely thank all our lenders for their continued confidence and commitment to us. This transaction demonstrates the unrivalled depth of our portfolio in Australia. It will allow us to strengthen our business model of owning and operating our own assets and provides a solid foundation for our future growth.”
With maturities of 5.5 and 7 years, this tranche supports 1.3 GW of solar, wind and storage projects, including 3 new assets – 2 of which are under construction. Here are the details:
- Western Downs Battery - Stage 1: Located in Queensland, this project features a 270 MW / 540 MWh battery system, and has multiple virtual storage capacity contracts
- Culcairn Solar Farm: Situated in New South Wales, this 440 MWp solar farm is currently under construction and scheduled for commissioning in 2026. Half of its energy output has been sold to Smartest Energy under a 4-year agreement, while the project is also backed by a Long-Term Energy Services Agreement (LTESA) with the New South Wales Government
- Collie Battery - Stage 2: The 2nd phase of the Collie Battery project in Western Australia will have a capacity of 341 MW / 1,363 MWh. It operates under a capacity contract with the Australian Energy Market Operator (AEMO). Currently under construction, the project is on track for commissioning in Q4 2025
The first financing concluded in February 2024. Now, both debt tranches together exceed AUD 2 billion and are backed by a portfolio of 15 assets in operation or under construction with a cumulative capacity of 2.9 GW.
Driven by the high proportion of long-term contracts that ensure stable revenue streams, this financing has been well received by the investors. The diversification of the portfolio, spanning solar, wind, and storage technologies, as well as the fact that it is spread across multiple Australian states, has added to the appeal. This now positions Neoen to raise additional debt for future projects.
This funding was provided by a consortium of 11 leading Australian and international lenders: ANZ, Bank of China, the Clean Energy Finance Corporation, The Hongkong & Shanghai Banking Corporation, ING, KfW IPEX-Bank, Mizuho, MUFG, SMBC, Société Générale, and Westpac.