Total
0
Shares
Infigen Energy (ASX:IFN) - CEO & Managing Director, Ross Rolfe - The Market Herald
CEO & Managing Director, Ross Rolfe
Source: The CEO Magazine
Market Herald logo

Subscribe

Be the first with the news that moves the market
  • Renewable energy company Infigen (IFN) has entered into a $457.4 million security holder loan agreement with Iberdrola Financiacion SAU
  • The company’s new loan with Iberdrola is unsecured, non-amortising, and has a three-year maturity
  • Infigen will use the loan to repay the balance and cancel three of its four existing facilities
  • The company intends to repay and cancel Facility A, B, and C by the end of September 2020
  • Infigen Energy closed in the grey for 92 cents per share

Renewable energy company Infigen (IFN) has entered into a $457.4 million security holder loan agreement with Iberdrola Financiacion SAU.

Iberdrola Financiacion is a subsidiary of the Spanish multinational electric utility company, Iberdrola. In June this year, Infigen welcomed a takeover offer from another of Iberdrola’s subsidiaries, Iberdrola Renewables Australia. 

As Iberdrola acts to bring Infigen into the fold, the company has also extended its help through a refinancing loan. The loan which has been agreed to is unsecured, non-amortising, and has a three-year maturity.

Infigen will use the $457.4 million proceeds of the loan to repay and cancel three of its four existing facilities.

Specifically, the company will repay and cancel the outstanding balance of the amortising facility (Facility A) and the bullet facility within Infigen’s existing corporate facility (Facility B). Infigen will cash settle the balance of the Interest Rate Swaps with respect to those facilities.

Funds from the loan will also help Infigen to cancel the working capital facility (Facility C), which is currently undrawn. The company plans to repay and cancel Facility A, B, and C on September 30, 2020. 

For now, Infigen will retain its existing letter of credit and bank guarantee facility (Facility D), although this may change in the future.

Infigen Energy’s Independent Chairman, Len Gill, commented on the company’s agreement with Iberdrola Financiacion SAU.

“Iberdrola’s early refinancing of Infigen’s Corporate Facility demonstrates Iberdrola’s commitment to accelerated growth in the Australian electricity market," he said.

“With the benefit of Iberdrola’s strong financial position and long-term investment horizon, Infigen is well-positioned to substantially grow its sales of reliable and affordable clean energy,” he added.

Infigen Energy closed in the grey for 92 cents per share.

IFN by the numbers
More From The Market Herald
MPower Group (ASX:MPR) successfully connects Kadina to SA electricity grid

" MPower Group (ASX:MPR) successfully connects Kadina to SA electricity grid

MPower Group (MPR) has successfully connected a five-megawatts (MW) solar project to the national electricity grid at Kadina in South Australia.
Carnegie Clean Energy (ASX:CCE) - Chairman, Terry Stinson - The Market Herald

" Carnegie Clean Energy (ASX:CCE) finally becomes debt free

Wave energy technology developer Carnegie Clean Energy (CCE) has become debt-free for the first time in many years.
Tilt Renewables (ASX:TLT) - CEO, Deion Campbell - The Market Herald

" Shares in Tilt Renewables (ASX:TLT) spike following $2.7B takeover deal

Shares in Tilt Renewables (TLT) have soared to all-time highs following news of a proposed $2.7 billion takeover by a consortium of companies.
Calix (CXL)- CEO, Phil Hodgson - The Market Herald

" Calix (ASX:CXL) teams up with SaltX for new energy storage system

Calix (CXL) is teaming up with SaltX Technology to build a unique salt-based energy storage system in Sweden.