Swiss investment advisor and asset manager re:cap global investors has successfully obtained a financing package totaling GBP 36 million (approximately USD 44 million or EUR 41.3 million) for a solar-plus-storage project it acquired in the United Kingdom in late 2022. This development was confirmed by the firm's banking partner on Thursday.
The financing arrangement comprises EUR 35 million (about USD 37.3 million) in long-term refinancing funds extended by the German development bank KfW in two separate tranches. German commercial bank NORD/LB played a pivotal role by channeling KfW's financial support and synthetically converting the KfW financing from euros to British pounds through a simultaneous interest rate and currency hedging transaction. This conversion facilitates the servicing of debt directly through the project's generated cash flows.
The funding will be instrumental in facilitating the construction and operation of the Scurf Dyke project located in England. This project boasts a solar power capacity of 80.6 MWp and incorporates a substantial 16 MWh of battery energy storage.
Scurf Dyke secured a contract-for-difference (CfD) in the UK's CfD allocation round 4 in July 2022. Subsequently, in December 2022, the Swiss advisory firm, re:cap Global Investors, acquired the project's development rights from German renewables developer BayWa r.e. AG for its FP Lux investment funds.
The solar-plus-storage facility is presently in the construction phase and is anticipated to commence operations by the conclusion of 2023, according to information provided by NORD/LB.