Iona Capital secures debt financing for UK Anaerobic Digestion

Iona Capital Limited (“Iona”), the low carbon sustainable fund manager, has successfully closed a debt financing on behalf of one of its funds, Iona Environmental Infrastructure LP (“IEILP”), which has invested in an operational portfolio of 11 Anaerobic Digestion (“AD”) renewable energy assets, located across the UK.

IEILP is a greenfield fund, which launched in 2012 and is backed by UK pension fund investors. The investors’ funds were deployed to construct four large Gas-to-Grid assets, two local-authority backed combined heat and power (“CHP”) assets and five agricultural CHP assets. The assets are now fully operational, generating a combination of renewable electricity, heat and biomethane gas.

Iona engaged Investec as exclusive financial adviser to structure, arrange and syndicate up to £60 million of senior secured term facilities. Allied Irish Bank (“AIB”) and Banco de Sabadell have been selected as mandated lead arrangers.