TNB completes £72mil refinancing for UK offshore wind investment

TNB president and chief executive officer Datuk Indera Ir. Baharin Din

KUALA LUMPUR: Tenaga Nasional Bhd’s (TNB) wholly owned subsidiary, Vantage RE Ltd has completed a £72mil (RM382mil) refinance package with two major lenders in the UK.

In a filing with Bursa Malaysia, the utility giant said the financing facility with Mizuho Bank Ltd and National Westminster Bank Plc (Natwest) featured a 15-year tenure and is related to TNB’s offshore wind investment in Blyth Offshore Demonstrator Limited (BODL).

BODL is the entity that currently owns an operating 41.5MW offshore wind farm located off the northeast coast of England, in partnership with EDF Renewables, the renewable energy (RE) arm of French state-owned utility company, Électricité de France (“EDF”).

Vantage RE has a 49% stake in BODL, with the acquisition completed in October 2021.

“We are delighted to have completed this refinancing with two high-quality lenders in the UK. This refinancing allows us to unlock our renewables portfolio value through further optimisation of the existing capital structure and has demonstrated confidence in Vantage RE’s capabilities in the UK RE market.

“The net proceeds will be recycled to fund TNB’s RE growth in Europe as we continue to focus on achieving our long-term growth objectives,” president and chief executive officer Datuk Indera Ir. Baharin Din said in a statement.