TOM NAN CLACH WIND FARM REACHES FINANCIAL CLOSE
Nanclach Limited has successfully achieved Financial Close in respect of the project financing of the Tom Nan Clach CFD qualified onshore wind farm in Scotland. The project is managed and operated by Belltown Power Limited.
MUFG is underwriting 100% of the debt for the 39.1MW project which has progressed through its early works phase and is now in full construction. Commercial operation is scheduled to occur in 2019 or earlier if the grid connection programme can be accelerated. The funding provided by MUFG includes a £77m term loan to fund construction of the project. A long-term power purchase agreement (PPA) with Statkraft sits alongside the CFD. Advisors for the borrower were Elgar Middleton and Pinsent Masons, with DLA Piper and Wood Group acting for MUFG.
On completion, the 13-turbine Tom Nan Clach site in Nairnshire will provide enough clean energy to the Scottish network to power the equivalent of around 42,000 homes and is expected to contribute around £4.9m of community funding over its life to the local economy.
Tom Hill-Norton, of Belltown Power, said “We are delighted to have secured project finance from MUFG. We look forward to seeing this exciting project progress through construction and into operations with the strong support of MUFG”.
Stephen Jennings, Managing Director and Head of Energy & Natural Resources at MUFG, said “MUFG was mandated following a competitive process and is delighted to have supported Nanclach and Belltown in reaching this significant milestone. The project joins 8.2GW of existing renewable energy capacity in our EMEA portfolio, of which approximately 4.2GW is located in the UK and 0.4GW is under the UK CFD regime”.