Business

TNB seals RM381 mil refinancing for UK offshore wind investment

National utility firm inks deal with Mizuho Bank Ltd, National Westminster Bank Plc

Updated 3 years ago · Published on 20 Jan 2023 8:21PM

TNB seals RM381 mil refinancing for UK offshore wind investment
Tenaga Nasional Bhd’s newly announced refinancing package relates to its offshore wind investment in Blyth Offshore Demonstrator Ltd.– ABDUL RAZAK LATIF/The Vibes file pic, January 20, 2023

KUALA LUMPUR – National utility company Tenaga Nasional Bhd (TNB), via its wholly owned subsidiary Vantage RE Ltd, has successfully completed a £72 million (RM381 million) refinance package with two major lenders in the United Kingdom on Dececmber 16, 2022.

The financing facility with Mizuho Bank Ltd (Mizuho) and National Westminster Bank Plc (Natwest) featured a 15-year tenure and is related to the utility company’s offshore wind investment in Blyth Offshore Demonstrator Ltd (BODL), TNB said in a statement released here, today.

BODL is the entity that currently owns and operates a 41.5-MW offshore wind farm located off the northeast coast of England, in partnership with EDF Renewables, the renewable energy arm of French state-owned utility company Électricité de France. 

Vantage RE has a 49% stake in BODL, with the acquisition completed in October 2021.

TNB president and chief executive officer Datuk Baharin Din said the company was delighted to complete the refinancing with two high-quality lenders in the UK. 

“This refinancing allows us to unlock our renewables portfolio value through further optimisation of the existing capital structure and has demonstrated confidence in Vantage RE’s capabilities in the UK’s renewable energy market. 

“The net proceeds will be recycled to fund TNB’s renewable energy growth in Europe as we continue to focus on achieving our long-term growth objectives,” he said.

Baharin said this marked Vantage RE’s second successful refinancing exercise in 2022, with the first being the £275 million refinancing of its 365-MW solar portfolio in Vantage Solar UK Ltd completed in February 2022. 

Vantage RE’s asset portfolio consists of solar, onshore, and offshore wind assets totaling 530MW in generation capacity, with a further 102MW of solar under construction that is expected to achieve commissioning in the first quarter of 2024. – Bernama, January 20, 2023

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