A multi-disciplinary team from TLT, the Bristol-headquartered national law firm, has advised on funding for a major solar power scheme that used a pioneering financing method.
Innova Energy secured £30m of debt funding from NatWest to finance the mixed portfolio of UK rooftop and ground-mounted solar PV1 (photovoltaic) projects with a capacity of 57MW. 
The transaction was financed by NatWest using SONIA (the Sterling Overnight Index Average) rather than LIBOR (London Interbank Offered Rate) as its reference rate.
It was the first SONIA-based project finance facility made available by NatWest, as well as being one of the first in the market.
The bank is leading the way in offering alternatives to LIBOR ahead of its expected discontinuation at the end of next year.
The funding also made up part of NatWest’s commitment to provide £20bn of funding for climate and sustainable finance by the end of 2022 to accelerate the transition to a low-carbon economy.
The portfolio of solar projects is part of London-based Innova’s strategy and commitment to invest in quality assets generating green power across a diverse range UK sites, including selling power to industrial and commercial customers. 
TLT real estate partner Nick Shenken led the firm’s multi-disciplinary team, with support from partner Gary Roscoe and solicitor Emily Huish on banking and finance, and partner Alice Gardner on corporate matters. A number of experts from across the firm’s sector and service lines provided further support in what was the latest in a string of transactions handled for Innova.
The team advised on the finance documents and provided real estate due diligence across the portfolio, while supporting a simultaneous company restructure.
Gary Roscoe, pictured, said: “This was a complex portfolio transaction from a project perspective, and an interesting one given it is one of the first projects to receive financing using SONIA as the reference rate, an approach that is only set to gather momentum as the market moves away from LIBOR to risk-free rates.
“We are delighted to have supported Innova on another significant transaction. This funding represents a significant milestone for them, closely following their acquisition in July of a 5MW operating solar plant supplying the largest soft drink bottling facility in Europe, another excellent project we were delighted to work on with the Innova team.”
Innova Energy director Andrew Kaye added: “NatWest’s commitment to the low-carbon economy and flexible approach has helped us to put in place low-cost finance, while at the same time hedging our interest rate and inflation risks.
“This has created a secure platform upon which to grow our renewable energy portfolio and return value to our investors.”
“The team at TLT has again supported us through a complex transaction, and we are grateful for their commercial and strategic approach throughout the property due diligence, banking and finance processes.”
