DIF reaches financial close on 720MW UK solar-storage portfolio

July 5, 2023

DIF Capital Partners, via its DIF Infrastructure VII fund, has reached a close on financing for a co-located solar generation and battery storage portfolio in the UK.

DIF, together with 10 per cent co-shareholder ib vogt, acquired the portfolio in November 2022. The portfolio consists of seven ready-to-build sites with a total capacity of 720MW (380MW solar and 340MW battery energy storage systems.

The financing structure covers the first 540MW of projects in the portfolio and comprises fully committed senior debt facilities. It also includes an equity bridge loan provided by a group of senior lenders comprising ABN AMRO, ING, Rabobank, NAB, KFW and Lloyds, with Lloyds acting as agent. There is a further uncommitted accordion facility to expand the financing for the final 180MW of projects in the portfolio.

The first two projects in the portfolio have commenced construction, with an expectation that all projects will be operational between 2024 and 2025.

DIF was advised by Elgar Middleton, Lazard, CMS, DNV and Natural Power.

Gijs Voskuyl, partner and head of infrastructure at DIF Capital Partners, said: “These assets will play a significant role in the UK’s energy transition. We’re particularly happy to have secured an innovative, market leading portfolio financing agreement – the first of its kind for such a portfolio in the UK.”