Deutsche Bank Commits A$160 Million to Squadron Energy's Australian Wind Portfolio Refinancing

Deutsche Bank has committed 160 million Australian dollars as part of a refinancing for Squadron Energy, covering five operating wind assets across Australia and one under construction. The refinancing supports approximately 1.5 gigawatts of operational wind farms alongside the Uungula Wind Farm currently under construction in New South Wales, part of Squadron Energy's broader portfolio of approximately 2 gigawatts of wind assets spanning New South Wales, Victoria and Queensland.

 

Squadron Energy is the renewable energy platform of Tattarang, a privately owned Australian investment group, developing, owning and operating renewable energy assets across the country. The refinancing is structured as flexible, non-recourse financing, meaning lenders' recovery in the event of default is limited to the specific financed assets rather than extending to Squadron Energy's broader corporate balance sheet, a common structure for project-level infrastructure financing that isolates risk to the individual assets being funded.

 

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The financing structure is also designed to accommodate Squadron Energy's future growth, including the option to expand into battery energy storage projects, giving the company flexibility to draw on the same financing arrangement for additional asset types beyond wind generation as its portfolio develops. Deutsche Bank said the commitment reflects its confidence in the operational strength of Squadron Energy's wind portfolio and its long-term growth strategy, both of which it said are expected to play an important role in Australia's energy transition, describing the deal as deepening its partnership with Squadron Energy to support the company's next phase of growth.

 

Source: Deutsche Bank