Primrose Solar has agreed to a finance package totaling 31 million British pounds with M&G Investments in order to refinance its 41 MW Canworthy Water solar farm in Cornwall, U.K.
The inflation-linked financing is repayable over 18.5 years and is provided by M&G's pension fund clients seeking secure cashflows over the long term.
Canworthy was connected to the grid in December 2014.
The arrangement follows a 29 million British pounds deal concluded in October 2014 between M&G Investments and Primrose Solar to refinance four other U.K. solar farms in Glamorgan, Norfolk and Dorset.
‘Given this is a relatively new sector seeking institutional investment, it is essential for deals to be structured to protect client capital and ensure risks are appropriately rewarded,’ says Tim Huband, head of project and infrastructure finance at M&G Investments. ‘The investment characteristics on offer from this sector are attractive to our clients, and we are keen to do more.’