Foresight’s Australian renewable energy fund completes A$700m debt refinancing

Investment manager Foresight’s Australian Renewables Income Fund (ARIF) has completed a A$700m (£333.6m) portfolio debt refinancing, with the proceeds used to support its development pipeline.

The debt refinancing consolidates debt across ARIF’s portfolio of 10 operating renewable energy projects and provides a funding platform to enable ongoing investment in renewable energy developments, as part of the energy transition that is underway.

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The portfolio facility comprises a A$620m term loan and an A$80m multi-purpose facility provided by a syndicate of domestic and international banks, including ANZ, Westpac, Mizuho, HSBC, and Bank of China.

Structured as a green loan, the facility is underpinned by ARIF’s Green Finance Framework, developed in accordance with the Asia Pacific Loan Market Associations’ Green Loan Principles.

Foresight said the facility offers improved pricing, debt sizing, and increased flexibility in terms, relative to the existing project financing on the fund’s assets.

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RBC Capital Markets acted as financial advisor to ARIF, alongside W&C as borrower’s counsel. 

“This refinancing marks a significant milestone for ARIF, reinforcing the strength and scale of our operating portfolio and establishing a funding platform to support future growth,” Daniel Beaver, portfolio manager of ARIF, said. 

ARIF has a portfolio of operational renewable energy assets, spanning wind, hydro and solar, totalling 787 megawatts.

“ARIF aims to continue investing in high-quality businesses and assets supporting the energy transition across Australia and New Zealand, while maintaining our commitment to delivering attractive returns for our investors,” Beaver added.

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