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30 June 2008 - Renewable Energy Generation Limited (REG), the international renewable energy group, today announces a refinancing in Canada and a new turbine order.
REG has refinanced its first four Canadian wind farms, totalling 39.6 MW in capacity and constructed under the Ontario provincial Standard Offer Programme (SOP). The Can$75m ($74.3m) non-recourse refinancing has a 20 year amortization period with a 15 year term.
REG has received Can$33 million from the refinancing, with the balance due in early July and August when the Mohawk and Clear Creek wind farms are expected to be connected. Approximately Can$4.5 million of the facility will be payable subject to satisfactory performance of the four wind farms over their first twelve months of operation.
REG has signed a turbine supply agreement with GE for 24 of its 1.5 MW SLE turbines, which will be deployed on four new SOP sites scheduled to start construction during autumn 2009. Funds from the refinancing of its first four SOP projects will enable REG to equity finance these sites until they are operational, whereupon they will be refinanced with long-term debt.
Commenting on developments, Andrew Whalley, Chief Executive Officer of REG, said: "These are amongst the first projects to be built under the Standard Offer Programme. The 9.9 MW Cultus and Frogmore sites are now operating at full capacity, with Mohawk and Clear Creek scheduled to come on line over the next few weeks.
"The refinancing is a testament to the continuing appeal of operating wind projects deriving their income from sound, long term PPAs. The funds released from the refinancing will enable REG to continue its build-out programme, both in Canada and the UK, and the turbine supply agreement with GE further expands our SOP construction programme into next year."
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