DIF Capital Partners closes refinancing Finnish district heating network

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DIF Capital Partners announced the closing of the refinancing of Loimua’s (formerly known as Elenia Heat) acquisition debt facilities.

DIF Capital Partners, together with its partners LPP Infrastructure and Aberdeen Standard Investments, acquired Loimua in July 2019 with DIF Infrastructure V. Loimua is the second-largest private supplier of district heating in Finland, providing environmentally sustainable heating to residential, commercial and public sector customers. The company owns and operates 640 MW of heat production capacity across 16 networks, covering circa 500 kilometers and circa 4,600 supply points (85,000 end-users).

Through the refinancing of the acquisition facilities Loimua established a common terms multi tenor debt platform including long term bank debt and 10, 12, and 14 year private placement tranches from institutional debt providers, alongside working capital facilities for general and capex financing purposes. The refinancing further de-risks the company’s long term capital structure and provides operational flexibility to deliver growth in line with the business plan. The transaction was concluded at favourable terms and covenants, emphasizing that there is still strong support from debt providers for stable and sustainable businesses such as Loimua despite the recent capital market developments.

DIF Capital Partners and its partners were advised by DC Advisory (financial) and Shearman& Sterling (Legal).

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