Mainstream Renewable Power, set up by Eddie O'Connor last February following the sale of Airtricity, has raised €26 million in a loan note for investment in a number of wind farm projects.
The loans, which will be matched by equivalent equity from Mainstream, will be used for a range of projects including two planned windfarms in Chile.
Fintan Whelan, Mainstream’s chief financial officer said the company had hoped to raise up to €50 million through the loan note.
“It is a tough time in a tough market to raise money. We launched in October and when we cut it off at the end of the year and there was €26 million in the door at that stage.” The loan note was structured and arranged through Dolmen Corporate Finance.
He said Mainstream had €62 million in equity available for investment.
The fact that less was raised than intended will not delay any of Mainstream’s projects, Mr Whelan said.
“You always want a cash cushion for the unexpected; some money on hand for opportunities that will present themselves - and they will in this market.”
Mainstream Renewable was set up by Mr O'Connor and Mr Whelan in February last year using some of the €50 million money Mr O'Connor received from the sale of wind energy group Airtricity to Scottish and Southern Energy.
In June the company said it planned to seek €200 million in funding from private backers and institutions in a fundraising drive. In a statement today Mainstream said it has raised €72 million in equity, including €20 million Barclays Capital for a 14.6 per cent.
Mr Whelan said the company was planning to run a further equity fundraising in the second quarter of this year.
“We will go out on an orderly basis to go and secure our funding for what we anticipate we need. We have an ongoing development project pipeline and the funds we require depend on what stage are our projects at”.
He also suggested recent declines in the price of oil had in no way diminished the business case for developing power from renewable sources.
“Wind is the most speedily deployable way of generating energy at scale. The price of oil has gone down but this is likely to be a relatively short-term reaction to the economic slowdown and peoples’ few of what’s in prospect,” he said.
Mainstream has development projects onshore in the US, Canada, South Africa and Australia and offshore in the UK and Germany.
