International law firm CMS has advised DIF Capital Partners (DIF) on the project financing of a 720MW co-located solar generation and battery energy storage system (BESS) portfolio in the UK.
DIF, together with 10% co-shareholder ib vogt, acquired the portfolio in November 2022. The portfolio consists of seven ready-to-build sites with a total capacity of 720MW (380MW solar and 340MW BESS). CMS also acted for DIF on the acquisition of the projects.
The financing structure covers the first 540MW of projects in the portfolio and consists of fully committed senior debt facilities, together with an equity bridge facility. The facilities are provided by a club of senior lenders comprising ABN AMRO, ING, Rabobank, NAB, KFW and Lloyds. There is a further uncommitted accordion facility which gives flexibility to expand the financing for the final 180MW of projects in the portfolio.
Gijs Voskuyl, Partner and Head of Infrastructure at DIF Capital Partners, said: “We are delighted to announce this major milestone in the commercialisation of a landmark UK solar and battery portfolio. These assets will play a significant role in the UK’s energy transition. We’re particularly happy to have secured an innovative, market leading portfolio financing agreement – the first of its kind for such a portfolio in the UK.”
The CMS team was led by partners, Nicholas Ross-McCall (Energy Finance); Nick Blair (Corporate); and Louise Dalton (Power).
CMS Partner Nick Ross-McCall commented: “We are delighted to have assisted DIF in securing this unique financing structure, the first true co-location financing in the market, and achieved for a large portfolio of ready-to-build projects”.
Louise Dalton, CMS Partner added: “This transaction further consolidates the firm’s market-leading energy storage practice, particularly in the new co-location sector, requiring the shaping of bespoke revenue arrangements in order to facilitate this ground-breaking financing.”
DIF was also advised by Elgar Middleton, Lazard, DNV and Natural Power.
Further details regarding the transaction can be found here:https://www.dif.eu/news/dif-capital-partners-achieves-financial-close-on-540mw-co-location-solar-and-battery-portfolio/.
