Bank of China contributes $16 million AUD to a $112.22 million AUD syndicated loan for the 125 MW Clare Solar Farm 2021 Refinancing Project

Project narrative

On December 17, 2021, financial close was reached on a deal in which a syndicate of four banks — the Bank of China (BOC), Westpac Banking Corporation, Sumitomo Mitsui Banking Corporation (SMBC), and National Australia Bank Limited (NAB) — provided a $112.22 million AUD ($80.43 million USD) syndicated term loan to Clare Solar Farm Pty Ltd. — a special purpose vehicle (SPV) jointly owned by DIF Infrastructure IV (50% equity) and Lighthouse Solar Fund (50% equity) — for the 125 MW Clare Solar Farm 2021 Refinancing Project. This loan carried a maturity period of four years. BOC contributed $16.00 million AUD ($11.47 million USD) to the syndicated loan; Westpac contributed $38.31 million AUD ($27.46 million USD), SMBC contributed $19.60 million AUD ($14.05 million USD), and NAB contributed $38.31 million AUD. The proceeds of this loan were to be used by the borrower to refinance the outstanding debt of the 145 MW Clare Solar Farm. Located about 35 kilometres (km) from the township of Ayr in North Queensland on 300 hectares, the Clare Solar Farm was Australia's first utility-scale solar generation facility to secure financing purely on the basis of a commercial Power Purchasing Agreement (PPA) without any additional government grant funding, having had a PPA signed with Origin Energy in 2016. The plant began generating its first energy in 2018; it generates 263,100 MWh annually. The project was developed by Madrid-based Fotowatio Renewable Ventures (FRV0, which later then sold the plant to Lighthouse Infrastructure and DIF for the sale of the solar plant; FRV continues to be responsible for the operations and maintenance of Clare.