KUALA LUMPUR (Jan 20): Tenaga Nasional Bhd’s unit has secured a £72 million refinance package from Mizuho Bank Ltd and National Westminster Bank Plc for offshore wind investment by Blyth Offshore Demonstrator Ltd (BODL).

In a stock exchange filing, TNB said the financing facility, which was sealed by its wholly-owned subsidiary Vantage RE Ltd that owns 49% in BODL, will have a 15-year tenure.

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 arm of French state-owned utility company, Électricité de France.

This marks Vantage RE’s second successful refinancing exercise in 2022, with the first being the £275 million refinancing of its 365MW solar portfolio in Vantage Solar UK Ltd completed in February 2022, said TNB.

Vantage RE’s asset portfolio comprises solar, onshore and offshore wind assets totalling 530MW in generation capacity, with a further 102MW of solar under construction that is expected to achieve commissioning in the first quarter of 2024.

This refinancing allows TNB to unlock renewable portfolio value through further optimisation of existing capital structure and demonstrated confidence in Vantage RE’s capabilities in the UK renewable energy market, said the utilities giant’s president and chief executive officer Datuk Indera Baharin Din.

“The net proceeds will be recycled to fund TNB’s renewable energy growth in Europe as we continue to focus on achieving our long-term growth objectives,” he said.

TNB shares closed five sen or 0.5% lower at RM9.45 on Friday, giving the utility giant a market capitalisation of RM54.37 billion.