The total funding amounted to £155 million (US$222.8 million) in total and was used to refinance free solar portfolios of feed-in tariff solar panels.The facilities were advanced as part of a framework agreement between MIDIS and ASG, under which MIDIS will provide refinancing for portfolios of ASG’s operational free solar assets. This allows ASG, a UK installer and operator of free solar PV systems for residential customers, to recycle capital and facilitate the roll out of its business model.Kit Hamilton, Senior Vice President, MIDIS said:
Simon Duncan, Chief Financial Officer, ASG said:
“The UK solar PV sector is supported by an established and stable regulatory framework and we are delighted to partner with the leading free solar operator in the industry. The ASG financings represent excellent assets for our pension fund and insurance investors on whose behalf we are sourcing long-term, stable assets in defensive infrastructure sectors.”
“We were looking for a long-term lending partner who could help us grow and provide more UK homes and businesses with solar PV technology. MIDIS was able to provide us with certainty and visibility over our financing strategy, allowing us to expand and provide UK consumers access to free solar energy.”
The deal comes after MIDIS’ separate £21.5 million financing of one of the largest UK solar projects in Pembrokeshire, mandated by the renewable energy infrastructure asset manager, Quercus Assets Selection.
MIDIS, a part of Macquarie Group, invests in infrastructure debt for a range of global institutional investors. As at March 2015, MIDIS had raised total commitments in excess of £1 billion for its UK inflation linked debt strategy, which includes separately managed accounts and a pooled fund. As at March 2015, MIDIS had invested in renewable energy assets with a combined annual output of 270,000 megawatt hours, capable of providing electricity to over 65,000 UK households.