28 May 2020
Investec advises on successful £60m debt financing for Iona
Investec advises on successful £60m debt financing for Iona’s UK Anaerobic Digestion renewable energy portfolio.
Iona Capital Limited (“Iona”), the low carbon sustainable fund manager, has successfully closed a debt financing on behalf of one of its funds, Iona Environmental Infrastructure LP (“IEILP”), which has invested in an operational portfolio of 11 Anaerobic Digestion (“AD”) renewable energy assets, located across the UK.
IEILP is a greenfield fund, which launched in 2012 and is backed by UK pension fund investors. The investors’ funds were deployed to construct four large Gas-to-Grid assets, two local-authority backed combined heat and power (“CHP”) assets and five agricultural CHP assets. The assets are now fully operational, generating a combination of renewable electricity, heat and biomethane gas.
Iona engaged Investec as exclusive financial adviser to structure, arrange and syndicate up to £60 million of senior secured term facilities. Allied Irish Bank (“AIB”) and Banco de Sabadell have been selected as mandated lead arrangers.
The financing will enable further distributions to be made to investors.
Nick Ross, founder of Iona Capital said, “It is a testament to the resilience of the underlying assets and the commitment of everyone working on the project that the debt financing was completed in such challenging market conditions. It is also a significant milestone for Iona and a firm endorsement of our investment strategy in the low carbon sector.”
Gulzar Hanspal, from Investec’s Power and Infrastructure Finance team said, “The transaction provides a continued vote of confidence in financing bioenergy projects, and the importance of Anaerobic Digestion in the transition towards Net Zero. We worked closely with Iona Capital and potential funders to present the high quality diversified AD platform, benefitting from robust contractual structures and income streams backed primarily by UK Government subsidies. This resulted in considerable funder interest and a strong commitment to this well-structured financing.”
Iona Capital was also advised by Simmons & Simmons (legal).
AIB and Banco de Sabadell were advised by Ashurst (legal), Fichtner (technical), Strutt & Parker (feedstock supply), Cornwall Insight (power and gas), Marsh (insurance), Mazars (model audit) and RSM (tax).
About Iona (www.ionacapital.co.uk / twitter: iona_capital)
Iona is a leading specialist investment manager with a focus on investing in long term projects in the renewable and low carbon energy infrastructure sector. Iona manages four funds and has invested in twenty four projects to date. Headquartered in London, Iona has an experienced team of renewable energy, waste industry and private equity specialists.
Nick Ross, Founder
+44 (0) 20 7064 3301
Taylor Keogh Communications
+44 (0) 20 8392 8250
About Investec Corporate and Investment Banking
Investec CIB is an international corporate and investment bank working with growth-orientated companies, institutions and private equity funds. Our people set us apart – empowered, straightforward and invested in our clients’ long-term success. We provide capital solutions, advice and ideas, along with bespoke investment solutions and access to capital markets. Founded in 1974, The Investec Group has grown successfully through its client focussed approach and its ability to serve diverse and evolving financial needs.
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Investec Bank plc (Reg. no. 489604) is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.
Investec Corporate and Investment Banking
Luke O'Mahony, Public Relations
020 7597 5261