Allens has advised the lenders to Nexif Energy on the AU$397 million portfolio project refinancing for the Lincoln Gap Wind Farm and Snapper Point Gas Power Station projects.
‘This transaction represents an important and unique contribution to Australia’s energy transition landscape. Not only is the transaction a further development of the broader trend of sponsors utilising portfolio structures to optimise their capital, but it also offers valuable insights into structuring and financing considerations for combining a gas peaker and wind generation portfolio,’ said lead Partner and Head of Project Finance, Michael Ryan.
‘In addition to the bespoke aspects of combining very different technologies and cash flow profiles, the transaction also had to be tailored to each project’s transitional phase between construction and operations, as well as the need to consolidate three separate existing debt facilities into one portfolio financing.
‘We were really delighted to work with Nexif and its lenders KfW, SMBC and Westpac, to help achieve financial close on such a unique and complex transaction.’
The Lincoln Gap Wind Farm, located near Port Augusta in South Australia, will operate for the next 25 years with the capacity to power 155,000 homes across the state. The project will consist of 468MW of wind turbines, including the fully operational 126MW stage 1 component of the project, and an 86MW stage 2 component of the project, which commenced generation in December 2021. A further stage is under development and the project also includes a 10MW of grid scale battery storage.
Snapper Point Gas Power Station will sell directly to the electricity market and support the provisions of electricity offtake contracts from the Lincoln Gap Wind Farm. The power station is a 154MW gas turbine peaking power plant project engaged in a long-term agreement with the South Australian Government to lease and operate five GE TM-2500 mobile aero-derivative gas turbines, each with 30.8 MW of net output.