Genex refinances its two operating solar projects

Australian renewable energy company and takeover target Genex Power has successfully refinanced its portfolio of two operating solar projects with a new 5-year multi-million-dollar financing package.

The new 5-year $162 million senior debt facility replaces the existing senior facility which was maturing later this year and covers the 50MW Kidston solar farm in Queensland and the 50MW Jemalong solar farm in NSW.

The new facility has been financed by existing lenders Deutsche Zentral-Genossenschaftsbank (DZ BANK) and Westpac Banking Corporation and was secured on more favourable terms due to the strong operating track record of the two solar projects.

“We are delighted to have successfully refinanced our existing senior and subordinated debt facilities on favourable terms, reflecting the strong operating performance of our solar projects,” said Craig Francis, Genex Power CEO.

“This refinancing not only strengthens our financial position but also enables us to continue our commitment to sustainable energy development in Australia.

The new financing comes only a few months after Genex Power agreed to a takeover offer from Japanese partner J-Power that valued the company’s equity at $380 million and more than $1 billion on an enterprise value basis.

Genex Power is also currently building the 250MW, eight-hour Kidston Pumped Storage Hydro Project, or K2-Hydro. Construction got underway in early 2021 and the company expects construction to be completed for later this year.

The Kidston Solar Project (KS1) and K2-Hydro projects form the foundation of the Kidston Clean Energy Hub, which could be further expanded to include a wind project.