TNB completes RM1.5b financing exercise for Vantage Solar UK

by SHAFIQQUL ALIFF / pic by TMR FILE 

TENAGA Nasional Bhd’s (TNB) wholly-owned subsidiary, Vantage RE Ltd, has completed a £275 million (RM1.56 billion) financing exercise through refinancing of its Vantage Solar UK (VSUK) portfolio of solar power plants in the UK. 

The financing facility with Macquarie Asset Management, arranged by Standard Chartered Bank Malaysia Bhd, is part of Vantage RE’s management initiative to optimise VSUK’s financing structure and provide greater investment certainty over the longer term, TNB said in a statement yesterday. 

“The refinancing exercise has proven that the portfolio is able to meet the lender’s expectation on the environmental, social and governance (ESG) compliance through the portfolio’s performance, which is aligned with the European Union’s (EU) taxonomy for sustainable activities. 

“The activity reinforces TNB’s journey in achieving its global ESG vision,” TNB president and CEO Datuk Baharin Din said in a statement yesterday.

TNB said the 365MW solar portfolio, which comprises 24 ground-mounted solar photovoltaic plants located across England and Wales, makes an important contribution to the UK’s supply of clean energy. 

It produces enough electricity each year as estimated by Macquarie’s Green Investment Group Ltd to power the equivalent of more than 90,000 homes whilst helping to avoid approximately 3,300 kilotonnes of carbon dioxide equivalent emissions over the remaining lifetime of the portfolio. 

Baharin said the refinancing exercise has proven that the portfolio can meet the lender’s expectation on ESG compliance. 

“Through the portfolio’s performance which is aligned with the EU’s taxonomy for sustainable activities. The activity reinforces TNB’s journey in achieving its global ESG vision,” he stated. 

He added that the refinancing exercise is another valuable contribution provided by Vantage RE to the solar portfolio under its management. 

“The portfolio’s Ebitda performance has improved by circa 28% from £30.3 million in 2020 to £38.7 million in 2021, assuming management control of VSUK’s portfolio last year. 

“TNB is confident that under Vantage RE management, VSUK’s portfolio will grow in value and continue to provide acceptable returns to its investors. This refinancing exercise will not have any material impact on TNB Group’s financial position,” he added.