GBN Member Transaction Database

CEFC provided a AU$20 million debt funding facility to assist in the final stage of the development and commercialisation of wave power technology, known as the CETO technology (CETO 6) in Perth. The CEFC, in conjunction with Carnegie, developed a new hybrid corporate loan/project finance financing structure tailored for this transaction and the CETO technology development. The new financing model is designed to lower the financing risks. The loan is structured to fund the development of a specific project but with security over the assets of the company including any cash refunds the company will receive under the R&D tax incentive. While technically a corporate loan, this has a high level of structural controls such as those usually found in project finance transactions. This financing structure can have wider application for other emerging energy technology projects, and be used by other financers to accelerate development of the renewable energy industry in Australia.

CEFC provided AU$100 million of debt finance to Balmain Funds Management for deep retrofit projects targeting commercial properties that will help reinvigorate Australia’s ageing building stock and improve its energy productivity while reducing operating and maintenance cost.The CEFC finance will be used for major building retrofits that lift a property’s National Australian Built Environment Rating System (NABERS) rating by at least two stars, up to at least four stars (or the equivalent thereof).

GIB bought 10% equity from RWE Innogy at purchase price of GB£ 220 million in this offshore wind project in Liverpool Bay. GIB’s stake in the wind farm was subsequently acquired by the GIB Financial Services-managed Offshore Wind Fund in October 2015.

GFO committed to invest US$5 million equity (preferred stocks) in the development stage of this wind project in Ibaraki. This is the first commercial offshore wind farm in Japan. Green Fund made an investment with the hope that wide knowledge and intelligence obtained through this project would contribute to the growth of Japanese technologies, relevant industries, and employment generation in the area of offshore wind.

GFO committed to invest US$1 million equity in this wind project in Hokkaido. The offtaker is Hokkaido Electric Power Company.

GFO committed to invest US$0.5 million equity in this Solar project in Fukushima. The project consists of Iwatsuki site (300KW) and 20 other sites (50KW each). The investment is going to support not only the promotion of RE but also restoration from the disaster of Tohoku Earthquake in 2011. This project is a model of widely distributed smaller solar power generation designed for snow and ice regions.

In 2014, GIB and Marubani refinanced part of stake in this offshore wind project off Yorkshire and the Humber estuary, UK with private investors. GIB invested GB£241 million in this project via equity stake. In 2015, GB£310 million of equity from original investment was refinanced with senior debt from five international lending banks.

CEFC further capitalised the existing Environmental Upgrade Agreement (EUA) fund with AU$20 million with National Australia Bank. The EUA finance is for improvement projects from AU$250,000 and above that reduce energy use, lower carbon emissions and save water. It is available for commercial properties in Sydney and Melbourne, and across many regional centres in NSW.

GIB’s GB£5 million debt will finance the installation of a combined heat and power plant, dual fuel boilers, biomass boilers and an effluent treatment plant that will benefit Rampton Hospital in partnership with Nottinghamshire Healthcare. GIB’s loan will be paid back over a 15 year period. This ‘spend to save’ model means that the cost savings from the energy efficiency measures will exceed the cost of the repayments. A similar model will be used for other projects financed by the alliance between GIB-SGEF.

CEFC agreed to provide Queensland biogas specialist Quantum Power Limited with finance of up to AU$40 million for new biogas energy infrastructure projects. These projects, each typically between AU$2 million and AU$4 million, will provide food processors and other agribusinesses with onsite energy, reducing their total energy costs and having a positive impact on their competitiveness.

GFO committed to invest US$3 million in a fund with Oita Venture Capital Co., Ltd. for a Geothermal project in Oita. This project makes best use of local natural resources (hot springs) and was developed in collaboration with local financial instruments and local governments.

A GB£250 million waste-to-energy plant was built in Teesside with support from the UK GIB. The project includes building all the necessary energy from waste infrastructure, including two rail interchanges. The project is part of a 30-year Public Private Partnership contract between the Merseyside Waste Disposal Authority and a consortium of SITA UK, Sembcorp Utilities UK and the ITOCHU Corporation. The facility will convert more than 420,000 tonnes of residual waste into energy each year, which would have otherwise gone to landfill.

A GB£244 million rail interchange and energy recovery centre is to be developed with support from the GIB. The waste is collected from six West London boroughs, serving a population of 1.6 million people. The project will enable over 96 per cent of this material to be diverted from landfill. GIB invested GB£20 million senior debt with a lending club consisting of Credit Agricole Corporate & Investment Bank, Bank of Tokyo Mitsubishi UFJ Ltd, Sumitomo Mitsui Banking Corporation, and Mizuho Bank in this biomass plant in West London. Equity stakes were purchased by SITA UK, Japan’s ITOCHU Corporation and Scottish Widows Investment Partnership.

GFO committed to invest US$1 million equity in this Biomass project in Gunma. The project, at the site of a beverage plant, will use food waste to produce electricity.

GIB refinanced a significant portion of Masdar’s 20% equity stake, GB£59 million in the London Array project, the world’s largest offshore wind farm. This project is part of GIB’ strategy to create a secondary market in offshore wind assets.

CEFC provided AU$50 million debt to Energy Efficient Loan (EEL) programme. This is an extension ofthe 2012-13 EEL programme targeting SME finance, but these loans are to assist not?for?profits, particularly local governments to undertake energy efficiency projects and reduce energy costs.

CEFC provided a AU$60 million senior debt facility to Moree Solar Farm for the development and construction of a solar PV power plant in Moree, New South Wales. The project is sponsored by a leading global solar development company Fotowatio Renewable Ventures (FRV). The project has received a grant of AU$101.7 million from the Australian Renewable Energy Agency (ARENA). Operating since March 2016, the 280-hectare, 56 MW (AC) project was the first in Australia to use single-axis tracking technology. Its 222,000 solar panels can tilt to face the sun as the earth rotates, enabling it to generate 30 per cent more energy than fixed position panels.

In March 2016, FRV announced it had secured a 14.5-year PPA with Origin Energy Ltd for 100 per cent of its output. CEFC will see full repayment for the finance for the project. With the introduction of new financiers to replace the CEFC debt commitment, this project is well and truly established as a high-performing commercial asset that is delivering enduring clean energy benefits.

CEFC provided AU$70 million in debt financing alongside AU$158 million being provided by a consortium of domestic and international banks to Portland Wind Farm. CEFC’s transaction involves financing the construction of stage 4 of the project and refinancing of stages 2 and 3.

CEFC provided a AU$443,000 loan facility to a solar project with a total cost of AU$990,000. NAB is financing the balance. The CEFC finance (originally through Low Carbon Australia, which is now integrated into the CEFC) is structured so the savings from the project and new revenue streams cover the capital and financing costs. This project has thus proceeded with AACo being able to keep capital available for its other developments underway.

CEFC provided AU$0.55 million of financing to upgrade 2,660 mercury vapour street lights throughout the shire. The changeover project is also funded by the Australian Government’s Community Energy Efficiency Program and the Baw Baw Shire Council.

CEFC provided a AU$75 million debt facility to support investment in new projects generating energy from waste coal mine gas and landfill gas, as well as remote hybrid renewables projects in Queensland. CEFC’s loan is on commercial terms that are consistent with EDL’s syndicated loan facility. EDL also obtained finance of AU$445 million under a syndicated loan facility provided by banks including Babson Capital Australia, Bank of America, ING, Investec, Macquarie, NAB and UBS.

CEFC’s finance facility will be used for projects that make beneficial use of what would otherwise be waste gases from coal mining and land fill, converting this to electricity. Waste coal mine gas is a reliable source of base-load power that can be used to substitute for coal-fired power. The CEFC has been repaid following EDL’s acquisition by the DUET group, providing a positive market validation of the EDL business model.

CEFC provided AU$40 million senior debt to co-finance a major greenhouse development near Port Augusta, South Australia which will use solar thermal technology to desalinate seawater to provide irrigation, and to heat and cool the greenhouses.

CEFC provided AU$37.5 million in senior debt finance as part of a financing package (syndicated loan) of approximately AU$280 million for the construction and operation of the Taralga Wind Farm, 45 km north of Goulburn, New South Wales.

The CEFC is a co-lender as part of an international consortium of Australian and overseas financiers. The other parties are ANZ, with EKF (the official export credit agency of Denmark). Santander (a major international retail and commercial bank based in Spain), along with CBD Energy will fund 35% of capital cost via equity finance.

CEFC provided AU$50 million debt to Energy Efficient Loan (EEL) programme. Co-funded by the CEFC and Commonwealth Bank, the programme provides financing for projects valued at up to AU$5 million. The finance includes AU$100 million for business loans, which can be used for a range of projects, covering energy efficiency, low emissions technology and small-scale renewable projects. The Energy Efficient Loan can be used to finance up to 100 per cent of the asset purchase price, allowing borrowers to preserve working capital for other purposes, and loan terms can be aligned to the effective life of the equipment. The loans can be used across a wide array of energy savings technologies.

CEFC invested AU$50 million as part of the refinancing of Victoria’s AU$1 billion Macarthur Wind Farm. This is the CEFC’s first transaction in the wind sector. One of Australasia’s largest renewable energy groups, Meridian Energy Ltd is refinancing its 50 per cent stake through a AU$529 million syndicate of co-lenders including the CEFC. The wind farm’s joint-venture partner is Macarthur Wind Farm Pty Limited, a wholly owned subsidiary of AGL. By providing senior secured debt financing to Meridian, the CEFC is playing a valuable commercial role in supporting the other syndicate members ANZ, NAB, ING, Shinsei, ICBC and EKF, to provide market liquidity.