Linklaters has advised The Green Deal Finance Company (TGDFC) on its establishment and financing agreements.

The initial fundraising programme successfully closed this week. It includes £65 million of subordinated financing from key stakeholders in TGDFC, including industry participants, together with financing from the Department of Energy and Climate Change (DECC) and a senior finance facility of £125 million from the UK Green Investment Bank.

TGDFC intends to raise additional financing in the future, including an additional senior finance facility from the European Investment Bank and ultimately in the debt capital markets.

Bruce White, lead Partner comments:

“The green deal programme is a key initiative of DECC, and were happy to advise on the establishment of the funding vehicle, TGDFC, and its successful fundraising.”

TGDFC has been established as a not-for-profit special purpose financing vehicle, to help implement the UK Government’s green deal policy to promote energy efficiency/saving measures in housing. It is to provide finance specifically in support of Green Deal Plans, under which energy efficiency measures will be installed in households. TGDFC finance is subject to the “Golden Rule”, under which the level of interest and repayments in the first year must not be greater than the expected reductions in energy bills resulting form the energy efficiency measures installed.

By aggregating large numbers of individual Green Deal Plans and establishing a central administration system, TGDFC has been able to raise long-term funding for Green Deal Plans as a long term and low-cost alternative to householders using personal finance.

http://www.linklaters.com/News/LatestDeals/2013/Pages/Linklaters-advise…