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Iona’s UK Anaerobic Digestion Portfolio Receives £60m Financing


Low-carbon sustainable fund management firm, Iona Capital Limited, has completed debt financing on the behalf of one of its funds, Iona Environmental Infrastructure LP (IEILP), which has an operational portfolio of 11 anaerobic digestion renewable energy assets across the UK

According to Waste Management World, IEILP’s assets included the construction of our large Gas-to-Grid assets, two local-authority backed combined heat and power assets and five agricultural CHP assets, all of which are now fully operational, generating renewable energy, heat, and biomethane gas.

Nick Ross, founder of Iona Capital said: It is a testament to the resilience of the underlying assets and the commitment of everyone working on the project that the debt financing was completed in such challenging market conditions.

“It is also a significant milestone for Iona and a firm endorsement of our investment strategy in the low carbon sector.”

Gulzar Hanspal, from Investec, who’s Power and Infrastructure Finance team acted as financial advisors and arranged the £60m financing, added: The transaction provides a continued vote of confidence in financing bioenergy projects, and the importance of Anaerobic Digestion in the transition towards Net-Zero.

We worked closely with Iona Capital and potential funders to present the high quality diversified AD platform, benefitting from robust contractual structures and income streams backed primarily by UK Government subsidies. This resulted in considerable funder interest and a strong commitment to this well-structured financing.”

Biomethane sourced from the digestion of organic waste could potentially supply the UK with 30 per cent of its 2030 carbon budget in some of the most challenging sectors to decarbonise, as well as providing green heat to 6.4 million homes by 2030.

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