Octopus Renewables gets loan commitment from Orlen to repay debt in wind farm sale

By Mary-Katherine Stinson

Lexington, Ky., Oct. 6 – Octopus Renewables Infrastructure Trust plc has an agreement for a loan, which will be used to repay the existing bank debt secured against its Krzecin and Kuslin wind farms, from Orlen SA, according to a notice.

Octopus has conditionally agreed to sell the wind farms to an affiliate of Orlen.

On completion of the transaction, Octopus Renewables expects to receive net proceeds, following the repayment of asset level debt and termination of hedging arrangements, of between PLN 470 million and PLN 490 million, equivalent to approximately £88 million to £92 million.

This represents a 14 to 19% premium over the holding value of the Krzecin and Kuslin wind farms of £77 million as of June 30.

The initial rate of return is expected to be 25% to 30% over the lifetime of Octopus’ investment.

Completion of the transaction is subject to approvals, which are expected within two to six months.

Octopus is a London investment company. Orlen is a Polish-based listed multi-energy company.

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