';

Hazel Renewable Energy VCT 1 and VCT 2 Refinance Portfolio Companies

March 2016

Hazel Renewable Energy VCT1 plc and Hazel Renewable Energy VCT2 plc (‘VCTs’) completed a refinancing of UK solar generation assets on 2 March 2016 in the form of Senior Secured RPI-linked bilateral loans. The assets in question, totalling 11.4MW of capacity are owned by the portfolio companies, AEE Renewables UK 13 Limited, Priory Farm Solar Farm Limited, Hewas Solar Limited and St Columb Solar Limited (‘Borrowers’), and include ground- mounted solar projects remunerated under the ROC-regime and residential solar assets remunerated under the UK Feed-in-Tariff regime.
The Lender is HSBC Bank Pension Scheme UK Limited whose funds are managed by Hastings Fund Management Limited.  Total funds raised were £13.59 million, and the interest rate has been set at 250bps above the UK index-linked gilt maturing in 2024, plus RPI, yielding an initial interest rate of 154bps plus RPI. The term ranges from 15.5 years to 18.5 years. As a result of this transaction, over 93% VCTs’ solar portfolio is now refinanced, and the VCTs now own 100% of all the underlying share capital. It is envisaged that a portion of the proceeds will be used to fund incremental investments, in line with the VCTs’ investment policy, that are expected to generate a significantly higher return than the cost of debt. The remainder is expected to be used as liquidity for additional dividend growth and share buybacks.
The transaction was led by Bozkurt Aydinoglu, Partner of Hazel Capital LLP, the Investment Adviser.

Lizzie Darbourne

Director of Marketing

 

DISCLAIMER

The information on this website is issued by Hazel Capital LLP (“Hazel Capital”) in relation to the provision of investment management services. Hazel is a limited liability partnership authorised and regulated in the United Kingdom by the Financial Conduct Authority (“FCA”).

The distribution of the information contained in the Website in certain countries may be restricted by law and persons who access it are required to inform themselves and to comply with any such restrictions. The information is not intended to be published or made available to any person in any jurisdiction where doing so would contravene any applicable laws or regulations. In particular, the distribution of the funds referred to in the Website (“the Funds”) as unregulated collective investment funds is restricted in the United Kingdom under the Financial Services and Markets Act 2000 (“FSMA”).

By accessing the Website you confirm that you are aware of the laws in your own jurisdiction relating to the provision and sale of funds and related financial services products and you warrant and represent that you will not pass on or utilise the information contained in the Website in a manner that could constitute a breach of such laws by Hazel Capital or any other person. The Website does not constitute an offer or solicitation in any jurisdiction in which such an offer or solicitation is not authorised or to any person to whom it is unlawful to make such an offer or solicitation.

The Website is provided for information purposes only and does not constitute investment, legal, tax or other advice or any recommendation to buy or sell any of the Funds mentioned. Where access to any part of this site is restricted and requires possession of a valid password, no other person should attempt to gain access to such part of the site. Hazel Capital does not provide investment advice to, nor receives and transmits orders from, investors in the Funds. Hazel Capital does not carry on any other activities for investors that constitute “MiFID or equivalent third country business” for the purposes of the FCA Rules. Prospective investors should take appropriate professional advice before making any investment decision. Investments in the Funds are to be made on the terms of the relevant prospectus or offering memorandum and no reliance should be placed on the information contained in the Website.