Conrad Energy raises £200M to support construction of two synchronous condensers

Conrad Energy has closed a £200 million greenfield financing to fund construction of two Pathfinder synchronous condenser projects.
National Grid launched the Stability Pathfinder 3 regional procurements in November 2022 to maintain transmission system inertia and short circuit levels as the amount of thermal generation on the electricity network falls.
The synchronous condensers, provided by Siemens Energy, will allow National Grid to manage inertia and short circuit level.
Conrad Energy is owned by I Squared Capital. Its adviser, Nomura Greentech, launched the financing process in June. The package has been supported by commitments from AIB, Siemens Financial Services (via Siemens Bank), HSBC UK, Bank of China and CaixaBank. It comprises a fully amortising term loan of c. £170 million, and £30 million of ancillary facilities maturing in March 2035. The financing package is underpinned by long-term cash flow visibility with no merchant exposure, supported by 10-year of 100% availability fee contracts with National Grid ESO.
The company’s legal advisers were Osborne Clarke and Gowling WLG (property). Aon (insurance), Mott McDonald (technical) and RSM (model audit) also provided advice to the company and its lenders. The project lenders’ legal adviser was Ashurst. Nomura’s Risk Solutions Group provided FX and interest rate hedging and also acted as the market hedge coordinator on the rate hedging.

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