Kelda Water Services – portfolio financing to fund new infrastructure projects

Kelda Water Services – portfolio financing to fund new infrastructure projects

Centrus acted as financial advisor to KWS on the debut portfolio financing of the non-regulated businesses in the Kelda Group.

Our value to the process was that having considered the options available and the financing objectives, we recommended a portfolio financing facility secured on the cashflows from its existing operational assets, rather than leveraging one large operational asset that had previously been ungeared. We used our expertise in both the project and corporate financing markets to devise a hybrid structure. The £35m, 14-year, committed facility is available to fund KWS’ new infrastructure assets, in particular its anaerobic digestion plants and can be increased under an accordion facility to £50m if certain conditions are met.

Partner Geoff Knight, who led on the transaction for Centrus commented, “the structure of the bank facilities were tailored to support the planned growth of KWS’ business by utilising the proven stability and strength of the existing operational assets. We drew upon our project finance expertise to support KWS in delivering a flexible financing which met its key objectives”.

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