Ancala Partners, the independent mid-market infrastructure investment manager, has raised £51 million of debt facilities for Green Highland Hydro, the asset ownership vehicle for hydroelectric power assets developed by Perth-based Green Highland Renewables
The financing follows a quadrupling in the size of Green Highland’s portfolio since Ancala acquired the business on behalf of its investment funds in April 2015.
Ancala Partners’ strategy has been to transform GHR – which previously focused purely on the development of assets for third parties – into a leading asset owner, consolidator and operator in the UK hydro sector.
The debt facility, which has been underwritten by Allied Irish Bank and ING, has been raised against a portfolio of 10 hydro assets, of which four are operational while the remainder are due to be commissioned over the next 12 months.
The operating hydro projects include a 0.8MW asset in Glen Lyon, a 2MW twin turbine scheme at Keltneyburn and a 1.75MW twin turbine scheme at Ceannacroc in Glen Moriston.
The new debt facilities will be used to support construction of the schemes and refinance capital invested in operational assets.
Ancala identified the UK hydro sector as offering the potential to deliver attractive, low-volatility returns. Ancala acquired GHR as a platform to execute a consolidation and development strategy within the fragmented UK hydro sector and has been proactively implementing this approach.
Spence Clunie, Managing Partner, Ancala, commented: “This debt facility is testament to the achievements of Green Highland Renewables and successful implementation of our strategy since we acquired the business in 2015.
“Prior to our acquisition, GHR focused purely on the development of assets for third parties. Our strategy has been to transform GHR into a leading asset owner, consolidator and operator in the UK hydro sector.”