03/22/2019

Fred.Olsen Renewables AS concludes a GBP 400 million refinancing and reduces cost of debt

Fred. Olsen Renewables AS, a company wholly owned by Bonheur ASA, through its 51% owned subsidiary, Fred. Olsen Wind Ltd., has today signed a non-recourse project finance facility with MUFG Bank, National Australia Bank, Siemens Bank and Sumitomo Mitsui Bank Corporation, to refinance its current debt facilities.

The GBP 400 million new term loan will have a tenor of approximately 13 years, extending to 2032, with margins starting at 1.4%, increasing to 1.6% in 2023 and to 1.7% in 2028. New interest rate swap contracts will be agreed to match with approximately 75% of the underlying funding.

In the new loan facility, margins are lower and the facility’s maturity date is extended with approximately 5 years. The refinancing will lead to a capital release for Fred. Olsen Renewables AS of approximately GBP 87 million. The total cash debt service going forward will be in line with today’s situation, due to the improved terms.

This transaction contributes to Fred. Olsen Renewables’ strategy of optimizing the capital structures of its projects and lowering the total cost of funding.