Pennant Walters and InfraRed close 35MW onshore wind farm in South Wales

4 April 2019 Investments

Pennant Walters, (Pennant) and InfraRed Capital Partners Limited (InfraRed), have successfully reached financial close on a 35MW wind farm to be built in South Wales. Pennant is the renewable development arm of the Walters Group, a mining and civil engineering business based in South Wales. InfraRed manages a €235m greenfield infrastructure programme, investing in the fast-growing sector of environmental infrastructure. The project is situated in the Ogwr Valley and is the second collaboration between Pennant and InfraRed, following closing of the 26MW Maesgwyn wind farm in October 2009.

The project will be constructed over the following 18 months and will produce enough green energy to power 40,000 homes in South Wales for up to 25 years. Key project highlights:

James Hall-Smith, Director at InfraRed Capital Partners said:

“The development lead times for onshore wind farms are substantial and the closing of this project represents an important milestone for InfraRed’s environmental infrastructure investment programme and for the deployment of renewable energy capacity in the U.K..”

Richard Simon-Lewis, Senior Director, Project Finance – Renewable Energy, Lloyds Bank Corporate Markets said:

“The financing on a sole basis of 1 of the largest onshore wind transactions in Wales provides an illustration of the Bank’s ‘through the cycle’ lending credentials together with its commitment to supporting both its relationship clients – in this instance a well-respected SME and a global infrastructure fund – and the U.K.’s burgeoning low carbon energy sector.”

Nick Greenwood, Director and Head of Low Carbon Finance at KPMG Corporate Finance said:

“This project required an innovative approach to the provision of funding and at a time when the wider market is experiencing difficulties, so it is a great credit to the combined strengths of the project, the sponsors, the lender and the wider low carbon energy sector.”

The Advisors to the Project were KPMG (Sponsor’s Financial Advisor), Eversheds (Sponsor’s Legal Counsel), McGrigors (Bank’s Legal Counsel), Natural Power (Technical Advisor), Willis (Insurance) and Operis (Model Auditor).

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