2nd Jun 2014 10:22
LONDON (Alliance News) - Jersey Electricity PLC Monday said it has put in place longer-term financing arrangements to replace its existing two-year revolving credit facility.
The UK utility company said the previous facility was set up to cover the expected costs associated with a further subsea cable between Jersey and France during the period towards its commissioning.
The company said part of the new financing is a GBP70 million investment between Jersey Electricity and Guernsey Electricity Ltd as part of its long standing partnership called the Channel Islands Electricity Grid.
Jersey Electricity also said it has obtained 20 and 25 year financing via a private placement with Pricoa Capital Group, supplemented with a five-year revolving credit facility from The Royal Bank of Scotland International Ltd.
In May, the company said its project to install another new underwater cable link with France, which is scheduled for early 2015, is on track and on budget, although it said that until it is installed, it is constrained on importation capacity and reliant on a heavier mix of more expensive on-island oil-fired generation, particularly in winter, when volumes are higher.
Jersey Electricity shares were untraded at 332.5 pence on Monday.
By Tom McIvor; [email protected]; @TomMcIvor1
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