AMP debt fund lends £49m to UK solar assets

The subordinated loan is backed by two UK solar portfolios held by Lightsource Renewable Energy Holdings.  

Sydney-based AMP Capital is lending £49 million ($75 million; €69 million) in subordinated debt to a 168MW portfolio of UK solar assets held by developer Lightsource Renewable Energy Holdings, reports PDI sister title Low Carbon Energy Investor.

The loan is being provided by the $1.1 billion AMP Capital Infrastructure Debt Fund II (IDF II) and will refinance and fund growth for two portfolios. They comprise 33 operational and 14 ground-mounted and rooftop solar assets across the UK. All the greenfield assets will be completed later this year, with both portfolios backed by 20- to 25-year fixed income tariffs under the UK’s Feed-in-Tariff regime.  

Lightsource structured finance director Paul McCartie hinted future deals with AMP might be in the works: “We would like to thank AMP Capital for its continued support on the transaction and look forward to maintaining this partnership with future deals in the pipeline”.  

Recently, IDF II lent $200 million to six US thermal generation plants owned by clean energy company Invenergy.  

AMP Capital has been investing in subordinated infrastructure debt since 1998. Currently, its global infrastructure debt team comprises 10 investment professionals in London, New York and Sydney. Lightsource calls itself the UK’s largest solar developer and manages an operational portfolio north of 1GW, producing enough energy to power 330,000 UK households.