Macquarie Infra Debt lends £106m to UK solar investor

The loan – a combination of RPI-linked and fixed-rate debt – will help Low Carbon refinance 12 operational assets.

Macquarie Infrastructure Debt Investment Solutions (MIDIS) has clinched another solar investment, this time lending £106 million ($163 million; €149 million) to UK investor Low Carbon, to help it refinance a portfolio of solar assets, low carbon energy investor, PDI's sister title, reported. 

The loan is a combination of RPI-linked and fixed-rate debt for 12 operational UK solar assets generating just over 99MW. The solar parks all benefit either from feed-in tariffs or the old Renewables Obligation framework and have been operational for at least a year. Low Carbon has a UK portfolio of over 270MW of operational solar assets.

According to Low Carbon co-founder and chief executive Roy Bedlow, the Macquarie loan is part of a growing trend: “Appetite for renewable energy investments is continuing to grow, as investors seek sustainable options which still deliver high returns. The scale of this deal underlines the growing trend towards more sustainable investments which we are seeing in the market today.”

MIDI has closed at least three solar loans since the start of the year. Prior to the Low Carbon deal, it had lent a total of £155 million to residential and commercial solar operator A Shade Greener. And in February, it provided £21.5 million to renewable infrastructure asset manager Quercus Assets Selection to finance one of the UK’s largest solar plants.