Malakoff draws down RM1.49b for wind farm in Australia

KUALA LUMPUR: Malakoff Corporation Bhd's indirect unit has drawn down A$502mil (RM1.49bil) which was used to refinance the loan facility for the Macarthur Wind Farm in Australia.

Malakoff, which is an independent power producer with the largest capacity in Southeast Asia, announced to Bursa Malaysia its indirect unit Win Macarthur Finco Pty Ltd (WMFPL) had drawn down the amount for the existing term loan.

On June 15,  WMFPL had entered into a syndicated facility agreement for a term loan facility of about A$502mil with ING Bank (Australia) Ltd; Societe Generale, Singapore Branch; Mizuho Bank, Ltd; Oversea-Chinese Banking Corporation Ltd; BNP Paribas, Sydney branch; and Blackrock Real Assets.

“The refinancing was completed today by drawing down the facility and utilising the entire fund for the repayment of all outstanding amounts, including fees and related expenses, under the existing term loan facility which was procured in 2013 to refinance the then project loan for the Macarthur Wind Farm,” it said.

Malakoff said the refinancing was for its 50% indirect participating interest in the unincorporated joint venture of the Macarthur Wind Farm through Malakoff Wind Macarthur Pty Ltd, a unit of its Australian subsidiary of Malakoff International Ltd.

The wind farm, in Macarthur, Victoria, was acquired by the company in 2013 from Meridian Energy Ltd’s wholly-owned subsidiaries, Three River Holdings No. 2 Ltd and Meridian Energy Australia Pty Ltd.

According to Wikipedia, it is on a 5,500 ha site which has an installed capacity of 420 megawatts (MW).Based on the prevailing wind speeds at the site, it is estimated that the long-term average generation will be approximately 1,250 GWh per year, operating at a capacity factor of around 35%. 

“The tenure of the facility is for a period of seven years. The facility is secured on a non-recourse basis over, amongst others, the mortgage of shares, mortgage of land, mortgage of lease, fixed and floating charge of the assets and the assignment of rights over the project documents,” Malakoff said.

Malakoff said although the refinancing is not expected to change the gearing level of the group, it will result in a reduction in interest expense to the group through WMFPL due to the more favourable effective interest rate obtained for the facility.