10th Oct 2014 08:22
LONDON (Alliance News) - Renewable Energy Generation Ltd Friday said it has signed a loan deal for GBP4.8 million in financing for its Whitemoor Bio-Power project, and has also sold two wind farms to a fund managed by BlackRock for a total enterprise value of GBP36 million.
The renewable energy group said it has sold its 10 megawatt St Breock and 8 megawatt Ramsey II wind farm projects to Blackrock.
Under the deal, BlackRock will assume project debts of GBP21 million and Renewable Energy Generation will receive an upfront cash consideration of GBP13.1 million, with a further GBP1.9 million payable following commissioning of the projects in 2015.
Renewable Energy Generation said it will oversee construction of the projects under a construction management agreement and once operational, will operate the projects on behalf of BlackRock through an asset management agreement.
The company said it will reinvest the proceeds of the sale into other projects in its portfolio, including its Rodbaston and French Farm projects, as well as further bio-power projects, which it said it intends to build during 2015.
Renewable Energy Generation said it has also signed a loan facility deal for GBP4.8 million with Caterpillar Financial Services, for the financing of its 18 megawatt bio-power plant at Whitemoor Business Park, near Selby in Yorkshire. It said the financing has a seven-year repayment term.
The Whitemoor project is in the final stages of testing and is expected to be operational by the end of October.
The company's stock was trading 0.4% down Friday morning at 67.10 pence.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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