Commercial renewable energy investor Ampyr Distributed Energy has raised £50 million in so-called mezzanine financing from US asset manager Franklin Templeton.
The funds will support the development, construction and operation of Ampyr’s pipeline of corporate and industrial (C&I) solar PV and battery energy storage systems (BESS) in Britain, as well as its “expanding pipeline of business acquisitions”. Mezzanine financing is a hybrid financing instrument that combines debt and equity and allows lenders to convert the latter into the former.
“We are extremely excited about the growth of on-site renewable energy,” said Will Devenney, head of infrastructure debt at Franklin Templeton. “We see an attractive opportunity for our investors in this part of the market, particularly if accessed through flexible arrangements that provide exposure to attractive risk-adjusted positions within the capital structure.”
Ampyr has made two acquisitions in the American solar market this year. In June, it bought C&I renewable energy developer Eden Sustainableand last month brought Shawton Energy into the fold; that acquisition brought Ampyr Distributed Energy’s portfolio of solar assets to over 100 MW across more than 150 UK locations.
The deal with Franklin Templeton followed a £170 million debt financing deal with French financier Crédit Agricole CIB, which the company said would enable the growth of UK solar and BESS.
Moreover, the company promised to do this in March match the £180 million investment in the deployment of solar energy in schools and hospitals, announced by the state energy company GB Energy. Ampyr Distributed Energy wrote to Energy Secretary Ed Miliband to highlight the role that private sector money can play in the country’s sustainable energy goals.
