Streamlined funding solution helps harness more wind power
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About Shetland Aerogenerators
Shetland Aerogenerators owns and operates Burradale Wind Farm, one of the world’s most productive wind farms. It also undertakes selective development of other large-scale wind energy projects.
What did they want to achieve?
The business wanted to fund the purchase and installation of a new Enercon 3MW Wind Turbine. Specifically, they were seeking a more cost effective and straightforward alternative to a commercial project finance route. They discussed the issue with Neil Murray, their Relationship Manager at RBS, who introduced them to Sean Kinlin at Lombard.
How we helped
We arranged a pre-inception funding to cover payments due at order, commissioning and delivery of the turbine. The preferred currency of the German supplier was euros, so we advanced the payments in this currency while providing the drawdown on the overdraft in sterling. Once the turbine was up and running, the overdraft was converted into a fixed rate hire purchase agreement spread over a seven-year term.
“We were extremely pleased with how Lombard took us through their process and appreciated the consistency of having a dedicated point of contact.”
Director, Shetland Aerogenerators
By choosing asset finance from us, Shetland Aerogenerators could access the cash they needed buy a new wind turbine – and save money while doing so.
Pre-inception funding meant they could keep their cash for professional fees and construction costs.
Hire puchase provided the security of fixed monthly payments on the wind turbine.
By advancing the payments in euros, we saved the business the cost of using a third party currency broker.