Downing Renewa. Regulatory News (DORE)

03 December 2021

Downing Renewables & Infrastructure Trust plc 

("DORE" or "the Company")

Revolving Credit Facility & Refinancing of Hydro Assets

The Board of Downing Renewables and Infrastructure Trust plc is pleased to announce that it has entered, via wholly owned subsidiaries, into two separate loan facility agreements: a £25 million Revolving Credit Facility ("RCF") with Santander UK plc and a seven-year EUR 43.5 million debt facility with Skandinaviska Enskilda Banken AB ("SEB") for its Swedish hydro assets.

Revolving Credit Facility

DORE Hold Co Limited, has entered into loan agreement for a £25 million RCF with Santander UK plc. The RCF has a four-year term, with the possibility to be extended for a further year, and also includes an uncommitted accordion allowing for an increase in its size to further assist the expected increase of DORE's investment activity. The RCF can be drawn in GBP and EUR (with DORE also able to make use of funds in other currencies) and is priced at the Sterling Overnight Index Average ("SONIA") plus 2.25%.

DORE will make use of the RCF mainly to fund the acquisition of additional assets and to meet capital expenditure requirements or equity funding commitments in respect of assets.

This substantial commitment with attractive pricing and terms reflects the high-quality renewable energy assets with long term revenue contracts held by DORE and will take a central role in the upcoming investment activity planned for the Company.

Refinancing of Hydro Assets

DORE initially acquired Downing Hydro AB ("DHAB"), its Swedish hydropower portfolio, on an unlevered basis shortly after the Company's IPO in December 2020. In light of the strong transaction pipeline and ongoing capital expenditure requirements, DHAB has entered into a seven-year EUR 43.5 million debt facility with SEB, a leading corporate bank in the Nordics. DORE expects to make its initial drawdowns under the facility in the near term to fund bolt-on acquisitions of various hydropower portfolios in Sweden.

Tom Williams, Partner, Head of Energy and Infrastructure at Downing LLP, further commented:

"We are pleased to expand our relationship with both Santander in the UK and SEB in Sweden. We're also delighted with the flexibility of both facilities which will accelerate the growth of the Company. We anticipate initial drawdowns under the facilities in the near term to fund acquisitions."

Ioana Bozan, Director, Specialised & Project Finance, Santander, said:

"We are delighted to have closed this bespoke debt facility and cement our relationship with Downing. The RCF represents a landmark transaction, demonstrating Santander UK's capabilities in the net asset value (NAV) lending space and as a leading lender for Renewable Energy, while enabling Downing to continue to grow the business and deliver on their strategy. It has been a pleasure for us to work with Downing's established and ambitious management team to deliver a flexible funding solution and unlock growth opportunities.

Santander's deal team, including Rakesh Ramana, Relationship Director in the specialist Energy and Sustainability team are looking forward to developing further the relationship with Downing on future projects and positively contributing to the wider climate change agenda."

Contact details:

Santander - RCF Lender

Ioana Bozan (Specialised & Project Finance), Rakesh Ramana (Energy & Sustainability Banking)

About Downing Renewables & Infrastructure Trust plc (DORE)

DORE is a closed-end investment trust that aims to provide investors with an attractive and sustainable level of income, with an element of capital growth, by investing in a diversified portfolio of renewable energy and infrastructure assets in the UK and Northern Europe. DORE has been awarded the London Stock Exchange's Green Economy Mark in recognition of its contribution to the global 'Green Economy'.

The Board classifies DORE as a sustainable fund with a core objective of accelerating the transition to net zero through its investments, compiling and operating a diversified portfolio of renewable energy and infrastructure assets to help facilitate the transition to a more sustainable future. The Company believes that this directly contributes to climate change mitigation.

DORE's strategy, which focuses on diversification by geography, technology, revenue and project stage, is designed to increase the stability of revenues and the consistency of income to shareholders. For further details please visit www.doretrust.com

LEI: 2138004JHBJ7RHDYDR62

About Downing LLP

Downing LLP is a London-based investment management firm. It has over 25,000 investors and currently manages in excess of £1.7 billion of equity invested into businesses across a range of sectors, from renewable energy, care homes, health clubs, and children's nurseries, to technology and sports nutrition. Downing has a demonstrable track record in renewables, having made more than 130 investments into solar parks, wind farms and hydroelectric plants since 2010.

This announcement is not for publication or distribution, directly or indirectly, in or into the United States of America. This announcement is not an offer of securities for sale into the United States. The securities referred to herein have not been and will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States, except pursuant to an applicable exemption from registration. No public offering of securities is being made in the United States.

For further details please visit www.downing.co.uk