Allens has advised a syndicate of domestic and international banks on the approximately A$1.75 billion refinancing of a portfolio of over 1GW of battery energy storage system (BESS) assets owned by Akaysha Energy, sponsored by BlackRock.
The portfolio includes:
- Orana BESS – the largest four hour duration BESS project in the Australian market at the time of original financial close and the first BESS with a virtual toll offtake agreement that was banked in the Australian project finance market
- Elaine BESS – with a 15 year virtual tolling agreement with Snowy Hydro which was the largest tolling agreement of that kind in the Australian market to date
- Brendale BESS – supported by a long-term revenue swap agreement with Gunvor Group and which commenced operations five months ahead of schedule
- Ulinda Park BESS – supported by a 10-year revenue swap agreement with Re2 and with further expansion planned following a successful tender win under the federal government's Capacity Investment Scheme
Partner Lisa Zhou said: 'The refinancing is one of a few Australian portfolio financings comprising solely BESS assets, marking a significant step in the maturation of Australia’s battery storage financing market. We are proud to have supported the lenders and to have worked alongside Akaysha Energy to bring this landmark transaction to a successful financial close.'
Partner and Head of Project Finance, Michael Ryan added: 'Portfolio financings are playing an important role in the development of efficient capital structures necessary for the delivery of Australia's energy transition. This platform for Akaysha Energy further demonstrates Allens' strength in that part of the market.'
The transaction is an important example of sponsors in the BESS and broader clean energy sector seeking to consolidate and optimise their capital structure across their assets, creating greater scale, efficiency and flexibility to support future growth.
Allens has extensive experience advising on portfolio financings across Australia’s energy sector. Recent matters include advising lenders on Squadron Energy’s $2.7 billion portfolio refinancing, lenders on Edify Energy’s solar and battery projects, lenders on Atmos Renewables’ green loan portfolio refinancing and Potentia Energy on its approximately $830 million renewables portfolio refinancing.
Allens legal team
Finance, Banking & Debt Capital
Lisa Zhou (Partner), Michael Ryan (Partner), Mark Hakeem (Senior Associate), Amaryllis Tian (Senior Associate), Flynn O'Byrne-Inglis (Senior Associate), Miles Sandston (Associate), Paul Kwon (Associate), Adam Schaffer (Lawyer) and Sarah McNaughton (Lawyer).