Kilroot will power ahead after £38m funding deal
A funding package that will inject almost £40m into one of Northern Ireland’s biggest power plants has been completed.
The £38m re-financing deal from Barclays Corporate is aimed at improving efficiency at AES Kilroot, which is located on the north shore of Belfast Lough.
The dual coal and oil-fired facility includes two generators, each capable of producing 300 Megawatts, and produces one-third of the region’s electricity.
Niall Quinn, head of structured finance with Barclays Corporate in Ireland, said that the package would help the facility thrive despite the downturn.
“The re-finance deal with AES Kilroot Power Limited is a good example of the type of strategic and sophisticated transactions we are supporting despite difficult market conditions,” he said.
“It serves as a clear indication that Barclays is open for business for quality transactions within the energy sector.
“Our team has substantial knowledge of the energy sectors in Northern Ireland and the Republic of Ireland through our recent funding of renewable power projects and regulated utility transmission lines.
“As a result, we were able to use this expertise and experience to tailor the Kilroot deal to the particular idiosyncrasies of the local power market.
“Kilroot power station plays an important role in the local energy infrastructure and is an essential tool available to the market operator in managing system demand and security.
“It is important for us to be able to support our client with this significant funding line, as well as providing all future operational banking requirements.”
Mark Miller, managing director of AES Kilroot Power Limited, said the agreement would be beneficial for both companies.
“We are extremely pleased to have secured this finance arrangement with Barclays as it gives us the flexibility to run our business effectively, whilst securing our long-term financing needs,” he said.
“They have demonstrated that they are a skilful strategic banking partner and we look forward to developing our relationship with them further.”
Kilroot is also a Top 100 employer in Northern Ireland and is one of the Belfast Telegraph’s Top 100 companies in the region.