Development illustration

Renewable Energy Finance

Hodge Bank, has long specialised in providing loan facilities for real estate transactions and development transactions. However, in recent years we have taken some of this core expertise and deployed it in the growing renewable energy sector. Our view is that the funding of renewable energy projects has many similar characteristics to real estate funding in that the phased approach to building development and turbine or solar site construction are quite alike. Once a project becomes operational then it is akin to a long term investment loan.

Our team has build up considerable experience in the financing of wind assets, both for single site turbines and larger portfolios. We provide a traditional banking service and take the time to get to know our clients and to understand their longer term strategic objectives. Based upon this, we develop lending solutions that are tailored to meet your immediate financing needs as well as serving as a foundation for a longer term funding relationship.

Our lending appetite is concentrated in established technologies, primarily wind and solar PV. The key considerations within our lending appraisal are the skills and experience of the project sponsor, effective due diligence work on the wind or solar potential of the proposed site, the proposed equipment type and support packages, along with confirmed grid connections and power purchase agreements.

Speak to us today to discuss your requirements. Each new lending facility is bespoke in nature and will be negotiated directly between us. However, typical parameters;

Borrower types
Companies, SPV, partnerships, private individuals.
Loan Size
Generally £500k – £5m.
LTV
Up to 80% of total project costs.
Term
Typically up to 10 years.
Amortisation profiles
Straight line capital and interest repayment.
Covenants
Debt Service Coverage 150% Interest cover.

Recent transactions

View a selection of recent transactions.