April 2019.
Palisade Investment Partners (Palisade) is pleased to announce the successful refinancing of a new $160 million, 13.75 year debt facility for Hallett 1 Wind Farm (Hallett).
Hallett’s new long-dated debt facility has been underwritten by the National Australia Bank (NAB) and will be syndicated to institutional investors in the Japanese life insurance market.
The refinancing has achieved highly attractive pricing and terms, reflecting the strong credit position of Hallett and the underlying strength of Palisade as a long-term sponsor.
Palisade CEO Roger Lloyd said: “The refinancing of Hallett represents another major achievement for Palisade’s renewable energy portfolio following the successful long-dated financing of Waterloo Wind Farm in late 2018.
Hallett now has a permanent financing solution that removes future refinance risk from the business. Combined with its fixed cash flow profile under the AGL off-take structure, Hallett’s investors have clear visibility over their long-term investment returns”.
Connie Sokaris – General Manager, Client Coverage said “NAB is delighted to bring together its structured finance and distribution capabilities to deliver Palisade and its investors a compelling solution”.
Hallett’s refinancing has been executed in accordance with Palisade’s broader treasury risk management framework, which seeks to manage refinancing risk by targeting diversity of funding tenor and source across the portfolio, enhancing risk adjusted returns to investors.
Mr Lloyd said: “We are continuing to observe attractive long-term debt pricing due to strong liquidity in long-dated financing structures and historically low long-term base rates.
Palisade continues to assess long-term financing structures for the assets we manage while market conditions remain attractive”.
Palisade’s Renewable Energy Fund (PREF), which owns a 49% interest in Hallett, is now over $300 million in FUM and commitments, including a $75 million cornerstone commitment from the Australian Government-backed Clean Energy Finance Corporation. In addition to Hallett, PREF also has interests in Waterloo Wind Farm, Ross River Solar Farm and Granville Harbour Wind Farm, which is due for construction completion early 2020.
PREF, which is currently open to new commitments from institutional investors, generated a total return since inception to 31 March 2019 of 15.2% per annum, including a cash yield of 7.3% per annum.
For further information, please contact:
Simon Parbery
Investment Director
Ph: +61 2 8970 7811
simon.parbery@palisadepartners.com.au
James Hann
Investment Director
Ph: +61 2 8970 7803
james.hann@palisadepartners.com.au
About Hallett Wind Farm
Hallett Wind Farm is a 94.5MW facility located in South Australia. Hallett comprises 45 turbines and has a long-term offtake agreement with AGL until 2033, under which AGL takes all electricity generated and renewable energy certificates produced in return for an agreed schedule of payments. AGL also provides asset management services to Hallett, including management of the O&M contractor Vestas. Palisade manages 100% of Hallett and is responsible for appointing the company’s Board of Directors.
About Palisade Investment Partners
Palisade is a specialist, independent infrastructure manager that provides institutional investors with access to Australian infrastructure projects through tailored portfolios and comingled funds. Palisade’s multi-disciplinary and experienced team focuses on attractive midmarket assets that are essential to the efficient functioning of the communities and economies they serve.