Gaelectric, has raised £56 million (€65 million) in funding for its portfolio of on-shore wind energy projects in Northern Ireland and the Republic of Ireland.

The portfolio comprises 164 MW of generation capacity across 13 projects which the Group plans to develop out by 2017, representing a total investment in the region of £215 million (€250 million). Gaelectric has also concluded a framework agreement with leading German turbine manufacturer Enercon which will see Enercon technology deployed on all the Gaelectric sites covered by the current funding round.

The funding is led by Swedish group, Proventus Capital Partners, who specialise in providing development capital through private corporate loans to mid-sized companies for growth. Gaelectric was assisted with the transaction by McCann Fitzgerald and by RBC Capital Markets.

The funding provided by Proventus Capital Partners has been complemented by a senior debt package structured and provided by Nord/LB. This debt financing has been used to finance the construction of the 13.8 MW wind energy project which is currently being commissioned by Gaelectric at Carn Hill, Co Antrim.

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Commenting on the successful conclusion of its latest funding round, Gaelectric Group Finance Director, Barry Gavin, said: "The funding we have secured will, together with our agreement with Enercon, underpin the delivery of our onshore wind energy portfolio in Ireland which comprises approximately 164 MW of projects and represents a total investment cost of approximately £215 million (€250 million). We are particularly delighted of the opportunity to partner with Proventus, Nord/LB and Enercon, all of whom have international reputations and track records that will be of immediate benefit to Gaelectric.

"In our discussions with funders and investors we have been able to provide clear visibility of a portfolio of projects which have been substantially de-risked and which will be commissioned by 2017. We now have 120 MW of wind energy projects with full planning approval and grid connection offers. 18 MW of this portfolio will be generating renewable power by Q1, 2013. Our onshore portfolio on the island of Ireland will create sufficient generation capacity to power the energy needs of 85,000 homes and displace 262,000 tonnes of CO2 per annum."

The construction process will generate significant employment creating over 220 jobs in construction with approximately 25% of the total investment costs being spent locally. On-going employment opportunities are likely to be created for 60 operational and maintenance jobs.

(CD)