Bank of China contributes £28 million GBP to a £60 million GBP syndicated loan for the 72.9 MW Clover Wind Farm Acquisition Refinancing Project

Project narrative

On May 23, 2016, financial close was reached on a deal in which a syndicate of three banks — Bank of China (BOC), Société Générale S.A. (SocGen), and Banco de Sabadell S.A. — entered into a £60.00 million GBP ($87.12 million USD) syndicated long-term non-recourse loan agreement with CGN Europe Energy UK Holding Limited (CGNEE UK Holding) — a special purpose vehicle (SPV) wholly owned by Chinese state-owned energy company China General Nuclear Power Corporation — for the 72.9 MW Clover Wind Farm Acquisition Refinancing Project. This loan carried a maturity period of 12 years and seven months (12.583), a final maturity date of December 31, 2028, an interest rate of LIBOR plus a margin of 175 basis points (bps), and a commitment fee of 70 bps. BOC contributed £28.00 million GBP ($40.65 million USD), SocGen contributed £12.00 million GBP ($17.42 million USD), and Banco Sabadell contributed £20.00 million GBP ($29.04 million USD) to the loan syndicate. This loan was secured by (i.e. collateralized against) fixed and floating charges against all assets of CGN Europe Energy UK Holding Limited under the finance documents, including the facility agreement dated April 28, 2016 (this being the initial loan agreement signing date prior to financial close. The London Branch of SocGen served as security agent. The proceeds were to be used by the borrower to refinance a acquisition bridge loan that supported its purchase, from EDF ER Holdings, of an 80% interest in the Clover Onshore Wind Portfolio, consisting of three operational onshore winds farms in England: the 12.3 MW Glass Moor II Wind Farm, the 36 MW Green Rigg Northumberland Wind Farm, and the 24.6 MW Rusholme Wind Farm. The acquisition was completed in December 2014. EDF ER Holdings retained a 20% interest and served as operations and maintenance (O&M) provider and the off-taker.