Renewable Energy Generation Limited (RWE) – New General Revolving Credit Facility
New General Revolving Credit Facility
Renewable Energy Generation Limited, the international renewable energy group, today announces that it has signed an 18-month, £20m general revolving credit facility with HBOS. This facility ensures that the Group's UK and Canadian operations are well financed while REG finalises the long-term project finance for the three Harrow SOP projects in Canada that are scheduled to start construction in April this year.
The HBOS banking facility is in addition to the CAN$75m, 15-year project finance facility put in place with Fortis last year in respect of the Group's first four Canadian SOP projects. T his facility closed on the final commissioning of the Clear Creek wind farm in October 2008 and has now been fully drawn down.
The Group anticipates securing a long-term structured facility to finance the build of several new UK projects currently awaiting planning consent, which are in addition to the Group's recently consented projects at Goonhilly (repower) and Loscar.
Commenting on developments, Andrew Whalley, CEO of Renewable Energy Generation Limited, said:
"It is particularly pleasing to secure this financing, which is a testament to the strong growth in cash-flow which is coming from our successful development programmes in both countries.
"We are now in a phase when successful development is being turned into a significant operating portfolio and we expect to have 100MW of plant operating by the end of this year, with continuing construction through 2010. We have been able to procure wind turbines quickly by using equity through construction before refinancing with long term debt. This has enabled us to build more quickly than would otherwise have been possible. The quality of our projects and Group balance sheet is reflected in the ability to raise finance in these testing times and we look forward to the continued growth of the Group."