Press Release 30 June 2008
Renewable Energy Generation Limited
("REG" or the "Group")
Refinancing of Canadian wind farms and new turbine orders from GE
Renewable Energy Generation Limited (AIM: RWE), the international renewable energy group, today announces a refinancing in Canada and a new turbine order.
Refinancing
REG has refinanced its first four Canadian wind farms, totalling 39.6MW in capacity and constructed under the Ontario provincial Standard Offer Programme ("SOP"). The Can$75 million non-recourse refinancing has a 20 year amortisation period with a 15 year term.
REG has received Can$33 million from the refinancing, with the balance due in early July and August when the Mohawk Point and Clear Creek wind farms are expected to be connected. Approximately Can$4.5 million of the facility will be payable subject to satisfactory performance of the four wind farms over their first twelve months of operation.
Turbine supply agreement with GE
REG has signed a turbine supply agreement with GE for 24 of its 1.5MW SLE turbines, which will be deployed on four new SOP sites scheduled to start construction during autumn 2009. Funds from the refinancing of its first four SOP projects will enable REG to equity finance these sites until they are operational, whereupon they will be refinanced with long-term debt.
Commenting on developments, Andrew Whalley, Chief Executive Officer of REG, said:
"These are amongst the first projects to be built under the Standard Offer Programme. The 9.9MW Cultus and Frogmore sites are now operating at full capacity, with Mohawk and Clear Creek scheduled to come on line over the next few weeks.
"The refinancing is a testament to the continuing appeal of operating wind projects deriving their income from sound, long term PPAs. The funds released from the refinancing will enable REG to continue its build-out programme, both in Canada and the UK, and the turbine supply agreement with GE further expands our SOP construction programme into next year".
ENDS
Contacts:
Renewable Energy Generation Limited Tel: +44 (0)14 8340 0444
Andrew Whalley, Chief Executive Officer
David Crockford, Finance Director
Numis Securities Limited (Nomad for REG) Tel: +44 (0)20 7260 1000
Charles Farquhar, Anthony Richardson, Jag Mundi
Hogarth Partnership Tel: +44 (0)20 7357 9477
Julian Walker, Sarah MacLeod, Vicky Watkins
Notes to Editors:
Renewable Energy Generation Ltd (REG) is a world-leading renewable energy group. The Group's main business is the development, construction and operation of wind farms in the UK and Canada. It also generates power from refined used cooking oil in the UK.
The Cornwall Light & Power Co. Ltd: based in Cornwall, UK, it currently operates five wind projects in Cornwall, County Durham, Cumbria and Gwynedd, with a total capacity of 17.7MW and has a development pipeline of around 200MW.
AIM PowerGen Corporation: based in Toronto, Canada, AIM PowerGen Corporation is one of Canada's largest independent wind developers and has a pipeline of over 4,000MW of potential wind projects across seven provinces.
REG Bio-Power UK Ltd: based in Norfolk, UK, it operates electricity generation plant fuelled by refined used cooking oil.
Headquartered in Guernsey, REG was admitted to trading on AIM, a market operated by the London Stock Exchange, in May 2005 (AIM:RWE).
www.renewableenergygeneration.co.uk