Ancala Partners has secured a £51 million (€59 million, $63 million) debt facility for one of its portfolio companies – Green Highland Hydro (GHH). Ancala acquired the company in 2015.
The facility is being underwritten by ING and Allied Irish Bank, according to an announcement from Ancala. Spokespeople for both firms did not return calls seeking additional comment by time of publication.
Scotland-based GHH is the hydro-focused arm of Green Highland Renewables. It has been developing hydro schemes since 2007.
The debt facility is secured against 10 hydro schemes. Four of these are already in operation while the remaining facilities are due to be commissioned in the future.
The financing will be used to fund the construction of these facilities, the announcement notes. It will also be used to help with refinancing capital invested in other operations.
Lee Mellor, director at Ancala, told PDI the firm is seeking financing now because GHH, with four operational schemes, has reached a critical mass and is ready to take on the debt. He added the stable cashflow generated by hydro schemes suits debt financing.
Ancala has made £50 million (€57 million, $62 million) worth of equity investments in GHH to-date.