- Energy company agrees deal with NatWest as it embarks on portfolio expansion
Scotland based energy company, Red Rock Power Limited, has, via its subsidiary Afton Wind Farm Limited, secured £80m in financing from NatWest for its 50MW Afton Wind Farm in East Ayrshire. The onshore operational project was acquired by Red Rock Power debt-free in October 2018. The deal increases the company’s internal rate of return on its investment and will stabilise its balance sheet as it prepares to expand its portfolio with a move into new sustainable energy sectors and at least one acquisition before the end of 2019.
Guy Madgwick, CEO of Red Rock Power, said: “The financial backing of our Chinese owner, SDIC Power, puts us in a competitive position as we look to consider new acquisition opportunities. However, it was important for us to acquire this debt and create value from our investment on Afton Wind Farm. This finance deal with NatWest is testament to our growing reputation and growth potential in the renewables industry as a standalone enterprise.”
Bruce Riley, Managing Director, Head of Infrastructure and Project Finance, NatWest, said: “We are delighted to be supporting Red Rock Power on one of their first investments in the UK and are keen to continue to support their growth in the UK and Europe. Sustainable energy is a key focus across the bank and we have committed to funding and arranging £10bn to this sector by 2020. The Afton Windfarm financing is part of meeting this target and we are proud to have delivered a successful financing working closely with the Red Rock team.”
One of the final ROCs projects in the country, Afton Wind Farm, powers up to 35,000 homes and is expected to generate 3.5 million megawatt hours (MWh) of electricity in its lifetime. The wind farm marked Red Rock Power parent company, SDIC Power’s first onshore and fully owned, operating development in Europe. Red Rock Power also fully owns the Inch Cape Offshore Wind development, proposed 15km off the Angus Coast in the East of Scotland, and 25 per cent of Beatrice Offshore Wind Farm in the Moray Firth.