Proventus Capital seals another deal in Ireland

Swedish private debt manager’s €28 million agreement with Gaelectric follows investments in hotel and care home groups.

Proventus Capital Partners (PCP) has extended €28 million in debt financing to Irish renewable energy group Gaelectric from its second fund, PCP II AB.

The deal is part of a recent spate of activity in Ireland for the Stockholm-based private debt manager.

Last week it emerged that the firm extended €30 million in financing to Dublin-based hotel operator, PREM Group. This followed a deal with Staycity, another Dublin-based hotel operator in March, and the backing of Silver Stream, a nursing home group.

PCP’s deal with Gaelectric is the third loan it has extended to the wind farm developer since December 2012. Gaelectric will use the funds in the rollout of wind energy projects in Northern Ireland and the Republic of Ireland. In total, PCP has provided close to €100 million of growth capital to Gaelectric, PCP said in an email statement to PDI.

Henrik Bjerklin, investment director with PCP, said in a separate statement: “From our initial engagement in 2012 with Gaelectric, we have now participated on a further three occasions in providing finance to Gaelectric to support the transition of its wind projects to operational status.”

Explaining PCP’s reasons for investment, Bjerklin added: “Its onshore portfolio is grounded in projects with consents and grid connections in place, locations with strong wind resources and good generation technology. We are delighted to be able to support Gaelectric in realising its ambitions.”

Tom Nolan, Gaelectric’s head of corporate finance, called PCP a “key funding partner”, adding: “This latest funding agreement with Proventus maintains the momentum that Gaelectric has created in our onshore wind business and creates further value for our partners and shareholders.”

The funding round follows the completion of a £53.3 million refinancing facility with German bank Nord/LB on a Northern Irish wind farm. In December 2013, private debt manager BlueBay Ireland Corporate Credit also participated in a €90 million debt financing with Gaelectric alongside Nord/LB and PCP. PCP previously took part in a €65 million debt financing alongside Nord/LB in April 2013.

Meanwhile, hotel and apartment operator PREM said in the Irish press it would use funds from PCP to acquire freehold hotels, serviced apartment developments and hotel management and services companies. The group’s current portfolio spans Ireland, Belgium, France, Germany, the Netherlands and the UK with more than 3,000 guest rooms and 1,500 employees.

The loan to PREM is a five-year €30 million senior secured loan facility which will finance expansion plans and refinance existing bank debt.

In another Irish hospitality financing this year, PCP provided a €20 million loan to Dublin-based apartment operator Staycity. It also recently provided £6.25 million to Silver Stream, one of the country’s largest nursing home groups, as reported in The Sunday Times.