TIDMEAGA

RNS Number : 1061D

Eaga plc

17 March 2011

 
 17 March 2011 
 NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR 
  IN PART, IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO 
  WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OF SUCH 
  JURISDICTION 
 

Eaga plc ("Eaga")

Statement re: Signing of Equity and Facility Agreements of its GBP300m Solar Project ("the Solar Project")

Eaga is pleased to announce the signing of equity and debt financing documentation for its Solar Project. The Solar Project now has agreed funding of GBP300m to install Solar Photovoltaic ("PV") panels on the roofs of residential dwellings in the UK. This funding consists of equity totalling GBP75m, which will be invested by Eaga (GBP15 million), HSBC Environmental Infrastructure Fund and Barclays European Infrastructure Fund II (GBP30m each) in the newly created Special Purpose Vehicle company ("SPV"). Debt financing of GBP225m will be provided by a syndicate of five banks comprising HSBC, Lloyds, National Australia Bank Limited, RBS and Santander. The financing will be drawn down as the PV systems are installed and is subject to the satisfaction of certain customary conditions precedent.

The Solar Project uses an innovative structure, which enables private finance to deliver public policy and, as stated in their announcement of 11 February 2011, Carillion, who have made a recommended offer for Eaga, are highly supportive of the Solar Project and have supported and endorsed its signing.

Eaga will install the PV systems and also provide aftercare services for the SPV. It is expected that this Solar Project will install PV systems in over 30,000 homes and it opens the way for similar projects, given the scale of UK Government's targets for the installation of domestic renewable energy systems. Up to the date of this announcement Eaga has installed in excess of 1,000 solar PV systems, and it is intended that these will be transferred to the SPV in due course.

Eaga have received advice from J.P. Morgan Cazenove, Noble Grossart, Brewin Dolphin Corporate Advisory and Broking and DLA Piper in executing the transaction.

Eaga's Chief Executive, Drew Johnson said, "I am delighted that we have completed the finance raising of this ground breaking project which has been made possible by the support of all of our financing partners. The pathfinder nature of the project has meant that it has taken longer than we expected to get to this stage, during which time we have had to carry significant costs to maintain our installation capability, but we are now uniquely positioned with both the financial resources and the operational capability to capitalise on this significant market opportunity".

For further information please contact:

Eaga plc

Drew Johnson, Chief Executive Officer

Giles Sharp, Chief Financial Officer

Neil Spann, Director of Investor Relations

0191 245 8501

MHP Communications

Andrew Jaques

Ian Payne

020 3128 8100

Notes to Editors

HSBC Environmental Infrastructure Fund

HSBC Environmental Infrastructure Fund is a closed-ended private equity fund which develops, sponsors, implements and invests in the equity of environmental infrastructure projects. The Fund is managed by HSBC Specialist Fund Management Limited ('HSFML'), which is authorised and regulated by the Financial Services Authority and is a wholly-owned subsidiary of HSBC Specialist Investments Limited. HSBC Specialist Investments Limited ('HSIL') is the dedicated property and infrastructure investment arm of HSBC. In 2010, following changes in the regulatory environment, HSBC announced plans to sell its private equity businesses. The senior management of HSIL has agreed to acquire an 80% interest in the Fund Management business with HSBC underpinning its continuing affiliation by retaining a 20% shareholding. It is expected that completion of the transfer will occur on or around the end of March 2011 once regulatory approvals and other consents have been obtained.

Barclays Infrastructure Funds

A business unit of Barclays Capital, Barclays Infrastructure Funds Management Limited has raised six funds from institutional investors since 1996 with total funds currently under management of approximately GBP1.2 billion. The investment objective of Barclays Infrastructure Funds is to generate significant long-term yield-based investment returns through its experience of investing in PFI, PPP and similarly financed social infrastructure projects in the UK and continental Europe.

The infrastructure and the buy-out sides of private equity at Barclays Capital have co-existed independently from one another under one license and trading name since 1996, when infrastructure investing was still in its infancy. Since that time, infrastructure as an asset class has matured significantly and investor familiarity has increased.

For further information about Barclays Infrastructure Funds, please visit http://www.barclaysinfrastructurefunds.com.

This information is provided by RNS

The company news service from the London Stock Exchange

END

AGRUNUARAOAOAUR

Eaga (LSE:EAGA)
Gráfica de Acción Histórica
De May 2024 a Jun 2024 Haga Click aquí para más Gráficas Eaga.
Eaga (LSE:EAGA)
Gráfica de Acción Histórica
De Jun 2023 a Jun 2024 Haga Click aquí para más Gráficas Eaga.