New loan for Drax Power plant’s biomass plans

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An additional loan for Drax Power Station’s green scheme biomass power programme has been agreed.It has agreed a £75 million loan maturing in June 2018 with Friends Life, underpinned by a guarantee from HM Treasury issued under the Infrastructure UK Guarantee Scheme.This now brings the total loans to £625 million with £100 million amortising term loan facility agreed with the Prudential/M&G UK Companies Financing Fund in July 2012, £50 million amortising term loan facility agreed with the UK Green Investment Bank and £400 million revolving credit facility maturing in April 2016, and an additional £190 million gross proceeds from an equity placing in October 2012.The latest loan facility replaces £50 million of the £100 million loan agreed with the UK Green Investment Bank, which was signed in December 2012.Finance director of Drax, Tony Quinlan, said: “This further strengthens our balance sheet, as we progress our project to transform the largest coal-fired power station in the UK into an electricity generator fuelled predominantly by sustainable biomass.“The benefits are multiple, from securing jobs at Drax and across the UK in the supply chain to providing low carbon, cost effective and reliable renewable power for the consumer. We are delighted to secure the support of Friends Life and Infrastructure UK.”Investment officer at Friends Life, Mark Versey, said: “We are pleased to work together with Drax and HM Treasury and support the Infrastructure UK Guarantee Scheme as an institutional investor.

via New loan for Drax Power plant’s biomass plans – Local news – Selby Times.

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