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CIP refinances two biomass power plants in UK

CTBR Staff Writer Published 23 October 2017

Copenhagen Infrastructure Partners (CIP) has completed refinancing of £250m for its stake in two biomass plants in the UK.

The two biomass plants are located in Brigg and Snetterton and the financing has been done on behalf of CIP’s Copenhagen Infrastructure I K/S (CI I) fund.

The fund has offered equity, preferred equity and senior debt for the development and construction of the two plants. The plants have now started operating.

The senior debt financing has been provided by a combination of banks and institutional investors.

Copenhagen Infrastructure Partners senior partner Rune Bro Róin said: “We are focused on investing in green field energy projects and the completion and subsequent refinancing of these two first biomass plants in our portfolio is an important milestone for us.

“We are delighted to have received the support of the broader debt markets. We are grateful to our current lenders that engaged in this transaction and we are committed to continue building strong relationships with them and will continue to explore debt capital market opportunities.”

The two plants claim to be using proven straw-burning technology, whose construction risk has now been fully discharged and with stable operation and capacity more than the initial expectations.

These two plants generate clean energy and can operate with a variety of fuel mixes co-firing straw with miscanthus, woodchips and rape. Energy produced from the two plants is enough for the consumption of 152,800 households, while offsetting more than 500,000 tons of CO2 every year.

Aviva Investors alternative income solutions senior portfolio manager Sarah Wall said: “We were very pleased to work with CIP on this investment, which provides a good match for the strong demand we see from pension funds for assets that deliver reliable, long-dated cash flows with appropriate risk-adjusted returns.

“We were able to offer a bespoke debt structure to finance the project, helping CIP tailor the financing structure to their needs.”


Image: CIP refinances for two bio plants in UK. Photo: Courtesy of Copenhagen Infrastructure Partners K/S.