NextEnergy Solar extends £70m Santander credit facility

NextEnergy Solar Fund announced the extension of its existing £70m short-term revolving credit facility (RCF) with Santander on Friday.

The London-listed firm said the facility, originally set to expire in June this year, would now be available until June 2025, boasting improved terms with a margin of 150 basis points over SONIA, compared to the previous 160 basis points.

As of 7 May, the company's total interest cost for any amount drawn under the facility stood at 6.7%, attributed to SONIA's rate at 5.2%.

The extension followed the recent announcement of another revolving credit facility extension, totaling £135m, extended until June 2026, with two additional 12-month extension options at the company's discretion.

As of 31 December, the company had drawn £163m from its £205m in short-term revolving credit facilities, and an unaudited gross asset value of £1.17bn.

Gearing levels remained comfortably within the firm’s investment policy limit of up to 50% of gross asset value, with financial debt gearing at 28.8% and total gearing, including fixed coupon preference shares, at 45.7%.

“The extension of this revolving credit facility on improved terms is a testament to NextEnergy Solar Fund's large portfolio of high-quality assets and the availability of debt financing for leading market participants,” said Ross Grier, chief operating officer and head of UK investments at NextEnergy Capital.

“We are happy to continue our strong relationship with Santander as the sole counterparty to this facility.

“NextEnergy Solar Fund prides itself on its disciplined capital structure and continues to prioritise the capital recycling programme where the proceeds will be used to pay down existing revolving credit facility borrowings.”

At 1056 BST, shares in NextEnergy Solar were up 1.25% at 76.35p.

Reporting by Josh White for Sharecast.com.