Ashurst advised Banks Renewables Limited ("Banks"), the renewable energy division of property and energy business the Banks Group, in relation to the development and financing of a portfolio of three onshore wind farms that has achieved financial close.

Banks was awarded contracts for difference (CFDs) in March 2015 under the Government's first CFD allocation round for its Kype Muir, Middle Muir and Moor House wind farms, with a total capacity of approximately 151 MW. Turbine supply and maintenance is being provided by Senvion, while power from the sites is being sold under 15 year power purchase arrangements with DONG Energy.

The financing comprises PS210 million of commercial bank and institutional debt facilities arranged by Macquarie Infrastructure Debt Investment Solutions and Santander. The commercial facilities comprise commercial term facilities, construction guarantee facilities, construction revolving credit facilities and various bond facilities. The institutional debt comprises both fixed rate and CPI-linked tranches. ING, National Australia Bank and Rabobank are also participating in the commercial facilities.

The Ashurst team was led by head of utilities David Wadham, with support from partner Antony Skinner and assisted by counsel Nicholas Hilder, senior associate Pete Grayson and associates Lindsey Bouchara, Harriet Gray and Nicole Lim.

Commenting on the transaction, David Wadham said:

"We are pleased to have advised Banks Renewables on this significant CFD-based portfolio renewables financing. The deal is complex and quite unusual in being structured to allow institutional debt to participate in a construction project through the use of commercial guarantee facilities."

Simon Fisher, group finance director at the Banks Group, added:

"The expert advice and support we received from Ashurst during this process has been central to its successful conclusion. Onshore wind in general and these projects in particular represent the best value for money to consumers as the government seeks to deliver on its climate change obligations, and it's exciting to now be accelerating the process of taking these wind farms forward."

Brodies advised Banks on Scots law issues. KPMG acted as financial advisor to Banks Renewables and Norton Rose Fulbright advised the funders, with Burness Paull advising funders on Scots law.