IPPToday #238: Malakoff refinances largest wind farm in Australia for US$370 million
- Malakoff Corporation Berhad
- ING Bank
- Société Générale
- Mizuho Bank
- Oversea-Chinese Banking Corporation
- BNP Paribas
- Meridian Energy
- H.R.L. Morrison & Co
- AGL Energy Limited
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Malakoff Corp Bhd’s Australian subsidiary Wind Macarthur Finco Pty ltd (WMFPL) has completed the refinancing of the 420 MW Macarthur wind farm, located in south-west Victoria, Australia.
WMFPL has entered into a syndicated facility agreement for a term loan facility of about AUD502 million (US$372.3 million) with a group of lenders that includes ING Bank (Australia), Societe Generale, Mizuho Bank, Oversea-Chinese Banking Corp, BNP Paribas and Blackrock Real Assets.
The tenure of the loan is seven years. It is secured on a non-recourse basis over, amongst others, the mortgage of shares, mortgage of land, mortgage of lease, fixed and floating charge of the assets and the assignment of rights over the project documents.
Malakoff completed the refinancing by drawing down the facility last week and utilising the entire amount to repay all outstanding loans, which includes a term loan facility procured in 2013 to refinance the original project loan for the construction of the wind farm.
WMFPL owns a 50% stake in the project, which it acquired in 2013 from Meridian Energy’s wholly-owned subsidiaries, Three River Holdings No. 2 and Meridian Energy Australia Pty. The other 50% stake is owned by funds managed by H.R.L. Morrison & Co, acquired from AGL in September 2015.
The 420 MW wind farm commenced full commercial operations in January 2013. It consists of 140 units of Vestas' 3 MW turbines and generates enough clean energy to power the equivalent of approximately 154,000 average Australian homes. It is not only the largest wind farm in Australia, but the largest in operation in the Southern Hemisphere.
AGL operates and maintains the wind farm on behalf of Morrison & Co and Malakoff, and purchases the Renewable Energy Certificates and electricity output under an agreement that expires in 2038.