Wednesday 30th May 2018
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Tilt Renewables has entered into an agreement with Citigroup Global Markets and Forsyth Barr Group to underwrite a A$300 million equity raising should it be successful in its bid for a 15-year power contract with the Victorian state government in Australia. The agreement replaces an earlier deal with cornerstone shareholder Infratil.
Auckland-based Tilt, which was carved out of Trustpower in 2016, has applied for a portion of the Victorian Renewable Energy Auction Scheme (VREAS) which is seeking suppliers for 650 megawatts of new capacity. The outcome is expected to be known in July, and if successful construction of Tilt's 300 MWh Dundonnell Wind Farm would begin later this year with a view to generating power in 2020.
Tilt has already secured a fully committed debt package from National Australia Bank and the Bank of Tokyo-Mitsubishi UFJ to cover half the construction cost to build the A$600 million, 80-turbine wind farm and expects to raise the other half through new equity. Infratil has provided a conditional commitment to subscribe for its full pro-rata entitlement in the equity raising, Tilt said.
In early trading this morning, Tilt shares were unchanged at $2.08, while Infratil stock slid 0.3 percent to $3.39.
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