News & Analysis

KKR and Temporis back UK wind turbines

The £200 million lending platform announced earlier this month has provided its first investment.

-

US alternative manager KKR and renewables investment firm Temporis Capital has announced the first project from its £200 million (€250.2 million; $313.3 million) lending facility.

It will provide an £8 million loan to the Sròndoire Community Wind Farm in Argyll and Bute, Scotland to finance the installation of three turbines next to one of the UK’s best performing wind farms, a statement from both firms said.

The deal is also KKR’s first investment in UK’s renewable energy. Previously, it has invested in the sector in countries including the US, Mexico, Australia, France, Italy, Spain, Portugal and South Africa. Its tie-up with Temporis, a firm which focuses on investments in the sustainability sector, combines both firms’ experience in renewables. 

The £200 million initiative is backed by the UK’s Green Investment Bank which provided £100 million. KKR has provided the remaining £100 million.

Nat Zilkha, co-head of credit for KKR, commented in a statement: “Non-bank lending is becoming an increasingly important source of capital for many businesses and sectors. We have deployed almost $5 billion globally via our different lending platforms. This is KKR’s first investment in the UK renewable energy sector as renewable power becomes a crucial part of the UK’s energy mix.”

The Sròndoire Community Wind Farm is a joint venture between the Lithgow family of Ormsary and the Broadfoot family of Stronachullin, who have been living and farming the land in Mid Argyll for over a century. Like its sister project, the Allt Dearg Community Wind Farm, Srondoire Community Wind Farm will be partly owned by the local community, helping to ensure commercial benefits of the project are retained within the host communities.

David Watson, chief executive of Temporis, said: “Earlier in November, we announced the launch of a new lending platform dedicated to infrastructure projects in the renewable energy sector. Today, I am excited to announce the first of our investments. I am confident that many more are to come.”