Standard Life has completed an infrastructure financing transaction that provides £61m of long-term financing secured against the Snetterton Renewable Energy Plant, a biomass power facility in Norfolk, led by Octopus Capital.
The transaction demonstrates a structure that enables pension and insurance capital to access infrastructure assets within a matching adjustment-eligible structure. For infrastructure owners, the structure allows for additional borrowing from other more traditional third-party lenders and structures.
The Snetterton Renewable Energy Plant has been operational since 2017 and generates renewable electricity from biomass feedstocks sourced predominantly from UK agriculture. The facility produces enough electricity to power more than 100,000 homes and forms part of the UK’s renewable energy infrastructure.
For Standard Life’s customers, investments such as these have the potential to provide long-term cashflows that support secure retirement incomes, consistent investment returns and lasting financial security.
The transaction represents the first investment by Standard Life utilising this infrastructure financing structure and creates a blueprint that can be scaled and replicated across a broader pipeline of infrastructure assets.
Manuel Dusina, head of real assets at Standard Life, says: “This transaction represents an important milestone for Standard Life and demonstrates how innovative structuring can create new opportunities for pension and insurance capital to access infrastructure investments.
“By combining real estate and infrastructure expertise, we have developed an innovative Project Infrastructure financing structure that provides the long-term, predictable cashflows our customers need while supporting sustainable investment in essential UK infrastructure.”
Investments such as Snetterton derive from Standard Life’s pension risk transfer and individual annuity premiums.