NextEnergy Solar Fund, a specialist investor in solar energy and energy storage, has extended its existing £70m short-term revolving credit facility (RCF) with Santander.

The RCF, which had previously been due to expire in June this year, is now available until June 2025.

As of 7 May, NextEnergy Solar Fund’s total interest cost for any amount drawn under this RCF was 6.7%, due to the Sterling Overnight Index Average (SONIA) being at 5.2%. The facility now benefits from improved terms with a margin of 150 bps over SONIA, compared with 160bps over SONIA under the earlier terms.

The latest move is NextEnergy Solar Fund’s second RCF extension in recent weeks after it extended a facility of £135m to June 2026, with two additional 12-month extension options available at the company’s sole discretion.

NextEnergy Solar Fund said that the two recent RCF extensions “demonstrate the appetite of its banking partners” to provide debt to the group at attractive terms.

“The extension of this RCF on improved terms is a testament to NextEnergy Solar Fund’s large portfolio of high-quality assets and the availability of debt financing for leading market participants,” COO and head of UK investments at NextEnergy Capital, Ross Grier, commented.

“We are happy to continue our strong relationship with Santander as the sole counterparty to this facility. NextEnergy Solar Fund prides itself on its disciplined capital structure and continues to prioritise the capital recycling programme where the proceeds will be used to pay down existing RCF borrowings.”

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