Ancala Partners LLP
Ancala Partners raises £51 million debt facility for Green Highland Hydro
Ancala Partners LLP ( Ancala'), the independent mid-market infrastructure investment manager, announces that it has raised £51 million of debt facilities for Green Highland Hydro ( GHH'), the asset ownership vehicle for hydroelectric power assets developed by Green Highland Renewables ( GHR').
The financing follows a quadrupling in the size of GHR's portfolio since Ancala acquired the business on behalf of its investment funds in April 2015. Since the acquisition, GHR has significantly outperformed its operational and financial targets.
The facility, which has been underwritten by Allied Irish Bank and ING, has been raised against a portfolio of 10 hydro assets, of which four are operational while the remainder are due to be commissioned over the next 12 months. The new debt facilities will be used to support construction of the schemes and refinance capital invested in operational assets.
Ancala identified the UK hydro sector as offering the potential to deliver attractive, low-volatility returns. Ancala acquired GHR as a platform to execute a consolidation and development strategy within the fragmented UK hydro sector and has been proactively implementing this approach.
Ancala has invested over £50m of equity into GHR and is looking to continue growing the business.
Spence Clunie, Managing Partner, Ancala, commented: "This debt facility is testament to the achievements of GHR and successful implementation of our strategy since we acquired the business in 2015. Prior to our acquisition, GHR focused purely on the development of assets for third parties. Our strategy has been to transform GHR into a leading asset owner, consolidator and operator in the UK hydro sector."
The operating hydro projects include a 0.8MW asset in Glen Lyon, a 2MW twin turbine scheme at Keltneyburn and a 1.75MW twin turbine scheme at Ceannacroc in Glen Moriston.
About Ancala Partners
Ancala Partners is an independent infrastructure investment manager founded in 2010.
Ancala launched its UK Mid-Market Infrastructure Platform in February 2016 to meet the requirements of long-term investors looking for enhanced returns from core mid-market infrastructure investments in the UK. Ancala now has over £800 million in funds under management (as at end-February 2017).
Ancala's highly-experienced team has a proven track record in originating, executing and managing mid-market infrastructure investments.
The investment team combines experienced infrastructure investors with operational leaders who have a proven track record of de-risking businesses and improving cashflow through pro-active asset management, thereby protecting and enhancing returns. Ancala's senior partners are market and industry veterans with over 100 years' experience.
A strong network at senior levels with corporate and market participants enables Ancala to pro-actively source investment opportunities and generate a strong pipeline of bespoke investment opportunities in the UK and Europe.
Ancala is based at 40 Gracechurch Street, London EC3V 0BT.
About Green Highland Renewables
GHR is a Scottish company with offices in Perth and Dingwall.
It has been developing run-of-river hydro schemes since 2007, from initial concept through to consent, construction, commissioning and generation. It has extensive in-house capabilities covering planning, development, civil, mechanical and electrical engineering, as well as operations and maintenance.
It has developed over 50 hydro schemes with approximately 40MW capacity.
Ancala Partners LLP
Spence Clunie, Managing Partner
Tel: +44 (0) 203 440 3516
Lee Mellor, Director
Tel: +44 (0) 203 440 3518
Citigate Dewe Rogerson
Patrick Evans / Stephen Sheppard / Alice Stewart
Tel: 0207 638 9571
For more information:
Ancala Partners LLP