Armstrong Energy Income Limited, the equity platform managed by Armstrong Energy Limited, has secured innovative long-term financing for their recently acquired rooftop solar portfolio located across the United Kingdom.
The financing consists of UK listed notes, totalling £29.5 million placed with institutional investor and secured on more than 2,300 commercial and domestic rooftop installations. The notes will be listed on the London Stock Exchange.
The structuring of the listed notes was arranged by IDCM Limited, which was also responsible for the successful placement of the notes with institutional investors. Norton Rose Fulbright LLP acted as legal advisor for Armstrong Energy and Sidley Austin LLP acted as legal advisor for IDCM.
Steve Mahon, Director of Armstrong Energy Income, commented “This investment demonstrates the investment-grade quality of our assets whilst also enhancing equity returns. Our portfolio has excellent diversification of income streams and provide investors with a high level of index-linked income in a structure suitable for investors wanting to benefit from Business Property Relief or through a SIPP. We have benefited from working with IDCM and a first-class team of advisors on what is a notable transaction in the UK solar market.”
“We are delighted to have worked with Armstrong Energy on this transaction which represent a new milestone achievement for the solar debt financing market. Having arranged and placed the first listed solar bond in the UK in for ground mounted parks in 2012, we are now pleased to pioneer the ABS market for rooftop solar in the UK” commented Jean Christophe Oberto, Executive Director at IDCM, on the successful transaction.
The rooftop portfolio financed through the issue of the listed notes comprised of more than 2,300 rooftop sites installed on commercial, domestic and social housing roofs. The portfolio has a total generation capacity of roughly 11.9 MWp.
The index-linked revenue stream for UK solar assets offers our institutional investors an attractive fixed income-like return given the current low yields of index-linked treasury gilts.
About Armstrong Energy Limited
Armstrong Energy are an investment firm that manages energy assets for high net worth investors and family offices.
Armstrong Energy has specialised in the development, acquisition and operation of power projects that provide a stable yield for investors from the sale of electricity or heat.
Armstrong Energy has managed the construction and operations of solar PV assets with a value of more than £150 million for UK investors.
For more information, visit: www.armstrongenergy.co.uk
About IDCM Limited
Established in late 2009, IDCM delivers bespoke and innovative funding solutions across the capital spectrum, partnering with clients to meet their individual needs, strategic plans and financing requirements.
IDCM’s access to non-bank capital providers is broad and it works discretely with these institutions to provide financing solutions tailored to borrowers’ needs. It’s approach is applicable to a broad range of industries with a particular expertise in infrastructure (utilities, energy and transport), social infrastructure (social housing, university and student accommodation) and property.
IDCM is an established arranger in the Solar Photovoltaic (PV) Infrastructure Sector having arranged in excess of £300 million of debt financing in the UK solar sector.
For more information, visit: www.independentdebtcapitalmarkets.com