Metlen Energy working on portfolio financing
Greek energy and resources company Metlen Energy & Metals, is working on financing its 530 MW Australian energy portfolio, according to two sources familiar.
One said that banks are seeking approval from their credit departments to lend.
In a parallel process, Macquarie has been attempting to sell Metlen’s Australian solar portfolio since mid-way through last year.
Australian solar deals have struggled in a market where more than four million households have rooftop solar.
Metlen had hoped to close the equity sale by November, according to a teaser sent out when the equity sale launched but that has not yet happened.
That same marketing document noted that Metlen had raised AUD 460m (USD 286m) in debt linked to the Australian portfolio and was continuing to work with project financiers.
Metlen’s portfolio refinancing is one of a wave of similar deals driven by the fact that Australian renewables portfolios have grown large enough to support this kind of deal; bankers demand less interest to lend to a diversified portfolio than they would to lend to a single asset; and portfolio financings can bake in a permanent source of capital advantage for borrowers when they come to bid for new assets, sources have previously told Infralogic.
Metlen’s portfolio, spread across New South Wales (NSW) and Queensland, comprises eight operating and construction stage solar assets totalling 530 MW – 380 MW operating and 150 MW under construction.
About 70% of the output is contracted and has an average of eight years remaining on the power purchase agreements, according to the marketing document.
There is also a 2.9 GW pipeline of near to medium-term solar, battery storage and hydrogen projects, it states.
This includes the Denman Energy Hub, a grid scale battery project in NSW that could potentially reach 1.6 GW of capacity. This is being developed in four 400 MW phases.
Athens-listed Metlen also owns a 15% stake in the Rosedale Green Hydrogen production and refuelling project near Gundagai in NSW and has begun scoping development of solar projects in New Zealand.
Metlen’s energy business includes global power generation and distribution activities, gas supply and trading as well as construction and operation of renewables. It also operates the only vertically integrated bauxite, alumina and primary aluminum production unit in Europe, according to its website.
Metlen have been approached for comment but did not respond in time for publication deadlines.