Naturgy, through its international generation subsidiary Global Power Generation (GPG), has received strong backing for the management and development of its project portfolio in Australia with the signing of a financing facility 2.3 billion Australian dollars, equivalent to more than €1.4 billion. The financing has been agreed with 11 international banks and is based on GPG’s portfolio of operating and development projects in the country.
With this transaction, Naturgy strengthens its liquidity and provides GPG’s Australian business with the necessary resources to ensure its development.
The financing facility is structured around a portfolio of eight operating assets, six wind farms, one battery storage project and one solar-hybrid with storage, two photovoltaic plants under construction and one solar-plus-battery hybrid project under development. In total, GPG closes 2024 with 1 GW of projects in operation, in addition to 360 MW under construction and 510 MW ready for construction.
Steven Fernández, general manager of Financial Markets and Corporate Development of Naturgy, said that “this agreement is a clear reflection of the confidence that financial institutions have in our ability to lead the energy transition, supported by the hard work of a team committed to a more sustainable future”.
This financing is in addition to the €1 billion loan recently agreed between Naturgy and the European Investment Bank (EIB) to support investments in new solar PV and onshore wind power plants, as well as the repowering and hybridisation of existing plants in Spain. The loan, of which the first tranche of 400 million euros has been signed, will also be used to a lesser extent for investments in batteries for the storage of renewable energy.
Financial solidity
Thanks to the company’s agile management in exploiting available financing opportunities, the group’s overall liquidity remains strong, €9.7 billion in cash and cash equivalents and available credit facilities at the end of the first half of the year. This solvency, together with the cash generated by our operations, allows Naturgy to comfortably meet our financial obligations over the coming years.
This strength was recognised by the market last September with the issuance of two €500 million bonds with maturities of 6 and 10 years respectively, which were heavily oversubscribed by the investment community. The strong interest received by the group, with a total of 233 investors participating in the issuing, enabled Naturgy to obtain very competitive financing terms and improve its capital structure by extending the average maturity of its debt.
Australia, a key country in the company’s development strategy
Last year, Naturgy celebrated the 15th anniversary of its presence in Australia, a priority country for the group due to its great potential in terms of energy transition. In total, the project portfolio in this country represents a combined installed capacity of more than 1.8 GW: 758 MW wind, 818 MW solar and 245 MW/600 MWh storage.
GPG currently has four wind farms in the country: Berrybank 1, Berrybank 2, Crookwell 2 and Hawkesdale. The latter, located in the state of Victoria, has been in commercial operation since the end of August and has an agreement with Amazon for the supply of the energy produced. In addition to these wind projects, in 2023 Naturgy commissioned the ACT Battery project, its first storage facility in the world.
The group also has a large portfolio of projects under development and construction in the country, which will significantly increase this figure in the future. This week, the company opens the Crookwell 3 and Ryan Corner wind farms, its largest wind farm in the country at 218 MW, and will soon open the Cunderdin solar-plus-battery hybrid plant. The latter is a clear example of this commitment to the country as it is the first solar hybrid project to be developed in the country, with an investment of 172 million euros. The plant will have an installed solar PV capacity of 128 MW and a 55 MW/220 MWh battery energy storage system.
In addition, GPG recently started construction of Glenellen and Bundaberg, two new PV projects with a capacity of 260 MW and 100 MW respectively.
“The transaction reflects the strong position of the Naturgy Group in Australia, through its subsidiary GPG, as one of the most successful independent power producers in recent years and a solid commitment to consolidating the platform and its future growth,” said Francisco Bustío, CEO of Global Power Generation.
The company operates in the country through its subsidiary Global Power Generation (GPG), established in 2014, in which the group holds a majority stake of 75%, together with Wren House Infrastructure Management, which holds the remaining 25%. GPG manages a total installed capacity of more than 4,000 MW and employs around 500 people worldwide.