Macquarie and PIC back £100m Teeside Plant loan

The loan, which is CPI-linked and due to reach maturity in 2034, will support the construction of a biomass project in the North East of England.

Macquarie Specialised Investment Solutions (MSIS), a division within Australian bank Macquarie’s asset management team, has provided a £100 million (€116 million; $130 million) debt financing facility to support the construction of the Teeside Renewable Energy Plant.

The loan was completed in partnership with the UK-based Pension Insurance Corporation and is due to reach maturity in 2034. It is Consumer Price Index-linked, a feature of the deal which both parties claimed in a statement was “innovative”. It is also guaranteed by the Export Credit Agency.

Macquarie did not respond to a request for comment before press time.

The plant, currently being developed in the North East of England, is a 299MW biomass power station and is expected to generate electricity to around 600,000 homes in the region for 24 hours a day.

Peter Lucas, head of MSIS, said: “We brought together a unique combination of skills within our Macquarie Debt Investment Solutions and Specialised Capital Solutions team to employ market leading expertise both in ECA financing and in structuring bespoke infrastructure debt transactions to meet the needs of institutional investors.”

Elizabeth Cain, debt origination analyst at PIC, said: “This investment is not only an important piece of UK infrastructure, but also provides a high quality long-dated debt investment to support payment of pensions as part of our prudent investment strategy.”

Last month, the Australian bank provided a loan to the The Mater Private Hospital, the largest private hospital in Ireland, to the tune of €300 million. The unitranche facility is intended to assist the hospital with refinancing of its existing debt.

Established in 1969, Macquarie provides financial, banking and advisory services, operating from 64 offices in 28 different countries. The firm employs more than 14,000 people globally and held €322 million of assets under management as of 31 March.