Neoen doubles portfolio financing in Australia
Neoen, one of the world’s leading producers of exclusively renewable energy, has announced it has more than doubled its Australian renewable energy portfolio financing by securing a further AUS$1.4 billion of debt for an additional 1.3 GW of wind, solar, and storage assets.
The debt, with maturity of 5.5 years and 7 years, covers the financing of three new assets, including two projects currently under construction. The deal builds on Neoen’s first tranche of portfolio debt financing announced in February 2024. Taken together, this now represents over AUS$2 billion in debt for 15 assets in operation or under construction with a combined capacity of 2.9 GW.
The transaction was well received as a result of the portfolio’s high levels of contracted revenue and its asset mix of different technologies (solar, wind, and storage) across different states. The financing package provides Neoen with further flexibility to grow the platform in the future. Debt is being provided by a group of 11 major Australian and international lenders: ANZ, Bank of China, the Clean Energy Finance Corporation, The Hongkong & Shanghai Banking Corporation, ING, KfW IPEX-Bank, Mizuho, MUFG, SMBC, Societe Generale, and Westpac.
The operating assets being added to the portfolio are three solar farms in New South Wales (Griffith Solar Farm, Parkes Solar Farm, and Dubbo Solar Hub for a total capacity of 130 MW) and a wind farm in Queensland (Kaban Green Power Hub, 157 MW).
The new debt raised also enables the financing of three new assets:
- Western Downs Battery Stage 1 (270 MW/540 MWh) in Queensland, which has contracted multiple virtual battery agreements.
- Culcairn Solar Farm (440 MWp) in New South Wales which has a 4 year power purchase agreement (PPA) with Smartest Energy for 50% of its output and a long-term energy services agreement (LTESA) with the NSW Government. Currently under construction, it is on track to be operational in 2026.
- Collie Battery Stage 2 (341 MW/1363 MWh) in Western Australia, which has a 300 MW/4 hour capacity services contract with the Australian Energy Market Operator (AEMO). Construction of Collie Battery Stage 2 is underway and on track for completion in 4Q25.
Neoen is the largest renewable energy company in Australia with 4.3 GW of assets currently in operation or under construction. With an extensive development pipeline and a multibillion-dollar forward investment plan, Neoen’s ambition is to have highly competitive assets in each of its three technologies of solar, wind, and battery storage in every state it operates in, and to leverage this portfolio to help accelerate Australia’s energy transition.
Jean-Christophe Cheylus, Neoen Australia’s CEO, said: “We are delighted to announce this second tranche of our portfolio financing, and we extend our thanks to all our lenders for their continued trust and commitment. This transaction underlines the unique depth of our portfolio in Australia. It serves to strengthen our owner operator business model and provides us with a solid foundation for future growth.”
Xavier Barbaro, Neoen’s Chairman and CEO, concluded: “I would like to congratulate the Neoen Australia team on completing this extension to our portfolio financing so soon after the initial tranche, in order to support our rapid growth in Australia. Once again, it demonstrates Neoen’s unparalleled ability to create value, thanks to its maturing and diversified asset portfolio, and further cements our ambition to play an active role in the energy transition in Australia and around the world”.
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Read the article online at: https://www.energyglobal.com/solar/19122024/neoen-doubles-portfolio-financing-in-australia/
