Investec’s Energy and Infrastructure team has entered a long-term partnership with Privilege Finance which will release up to £90m worth of funds for UK climate change projects.

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Our role

Over £30m of finance has been arranged to date and the additional funding will enable existing anaerobic digestion (AD) customers to refinance their projects as they hit operations. It will also provide interest savings to borrowers and free up Privilege Finance’s capital to be reinvested, accelerating the deployment of new funding for new climate change projects.

Investec’s Energy and Infrastructure Finance team has in the past 5 years arranged or advised on more than £1bn of funding for bioenergy projects including the financing of a number of AD portfolios. Through this we are continuously strengthening our commitment towards the Sustainable Development Goals (SDGs) and in specific our commitment to Climate Action (SDG 13) and Affordable and Clean Energy (SDG 7).

 

The Deal

Launched in 2001, Privilege Finance has deployed more than £500m to build 40 AD facilities. These generate a combination of renewable electricity, heat and biomethane to produce over 3.5GW of energy per day.

Andrew Vernau, chief financial officer at Privilege Finance, commented:

“The coming together of two experienced players in the renewable energy arena with 20 years of combined experience in AD finance and a shared vision to turn the tables on climate change promises to accelerate the growth of new AD projects and their contribution towards driving down carbon emissions.”

Stefan Rattensperger, from Investec’s Energy and Infrastructure Finance team, commented:

“By using the funds from Investec to refinance projects after the initial project finance phase, Privilege Finance will be able to redeploy the money to allow investment in additional renewable energy or carbon reduction projects.”

“For end borrowers, it means they will move to a lower rate of interest while continuing to be supported by Privilege Finance’s team, who know and understand their facility.”

Mr Vernau explains that the production of renewable energy using AD technology is helping drive the UK towards the net zero emissions target by 2050.

“AD technology is proven and well-established, but mainstream banks still view it as a relatively new concept in the wider renewables sector. It’s therefore incredibly encouraging to see it supported by a major financial institution like Investec who understands the reliability of the technology and has successfully structured and arranged financings in the sector.”

 

About Privilege Finance

Privilege Finance is a specialist funder with over 20 years’ experience in financing projects which reduce carbon and mitigate against climate change.

One million UK houses are now being powered by green energy, as a result of over £500m of funding provided by Privilege.

In addition to the provision of funding solutions and expertise, Privilege develops, owns and operates renewable energy plants, and has an experienced sales and technical delivery teams working across the UK.