Ground-breaking refinancing of Macarthur Wind Farm paved way for further investment
1st CEFC wind sector transaction
The 420 MW Macarthur Wind Farm in south-western Victoria was the largest in the southern hemisphere when it began operating. The project’s refinancing in 2013 demonstrated to developers in the clean energy sector that there was a feasible exit strategy for large-scale renewable energy projects.
$50m
CEFC finance
420 MW
220,000
households powered
Our investment
In 2013, the CEFC made its first investment in the wind sector, committing $50 million as part of a syndicate of co-lenders to refinance 50 per cent of the Macarthur Wind Farm in Victoria. The senior secured debt finance was fully repaid in June 2018.
The wind farm was a joint venture between Meridian Energy and AGL. At the time Meridan Energy was one of Australasia’s largest renewable energy groups.
The refinancing facilitated the exit of Meridan Energy from the deal, while AGL retained its 50 per cent stake in the $1 billion project. At the time, Meridan Energy said the refinancing would support its ongoing activities in Australia.
By providing senior secured debt finance on the same terms as other syndicate members, ANZ, NAB, ING, Shinsei, ICBC and EKF, the CEFC operated commercially to help leverage private sector financing into renewable energy.
Committed: July 2013
Repaid: June 2018.
our impact
The refinancing of Macarthur Wind Farm - the first refinancing of a large renewable project in Australia - sent a strong message to future large-scale renewable energy projects in Australia that it was possible for developers to successfully complete a development-finance-exit cycle.
The CEFC involvement helped the market build an understanding of how the CEFC could participate and assist projects to reach financial close.
Our participation in the refinancing provided additional liquidity to the market and ensured efficient market pricing, encouraging other banks to participate and helping ensure that the financing was fully subscribed.
By crowding in international banks the financing increased the amount of investment in renewable wind energy projects in Australia.
Macarthur Wind Farm has been fully operational since January 2013. At the time it was the largest wind farm in the southern hemisphere and was estimated to have enough capacity to power the equivalent of 220,000 average Victorian households, while reducing carbon emissions by 1.7 million tonnes a year.
