Octopus Renewables Infrastructure Trust (ORIT) has secured a £100 million term loan facility from three existing lenders to help reduce its debt costs. The new five-year agreement with Santander, National Australia Bank, and Allied Irish Banks is aimed at paying down part of the company’s current, more expensive Revolving Credit Facility (RCF) debt.
The loan, secured against ORIT’s UK onshore wind and solar assets, will result in significant cost savings. The facility carries an all-in hedged interest rate of 5.3%, a notable decrease from the 6.5% rate on the existing RCF.
As of now, ORIT has drawn £151.2 million from the RCF. The net proceeds from the new loan will be used to pay down a portion of this debt, reducing the drawn amount to approximately £53 million.
Phil Austin, Chair of ORIT, commented on the facility, saying, “This new facility demonstrates ORIT’s ongoing commitment to reducing overall debt costs, enabled by the attractive terms secured by the investment manager against the high level of fixed revenue from these UK assets.”
ORIT has continued to explore strategies to further reduce costs and deliver value to its shareholders, with the current loan representing one such measure.
