NatWest International has provided a £15 million loan facility to Guernsey Electricity Limited (GEL) to help fund the acquiring and commissioning of a replacement undersea electricity cable between Guernsey and Jersey.
The proposed replacement, following the failure of the existing cable in October 2018, is designed to restore the overall electricity link between Guernsey and France to full power and will enable GEL to import low carbon electricity at full capacity once again.
Julian Turner, Chief Financial Officer, Guernsey Electricity commented:
“The replacement cable between the two islands improves the overall security of the electricity supply from France because it removes the section of the cable that has had reliability issues in recent years. The need to self-generate using heavy fuel oil while the cable has been operating below design capacity is a significantly more expensive option than importing electricity from France. The balance of cable financing is to be provided through the proceeds of the States of Guernsey Bond issue.”
He added:
“We were impressed with the Bank’s understanding of our needs and were delighted to have been able to work with their team to agree a 10 year lending commitment to enable us to progress this vital replacement.”
Lynn Whitworth, Commercial Relationship Director with NatWest International, said: “It was a pleasure and a privilege to work with Guernsey Electricity in order to provide a fit for purpose solution, which benefits not just the company but the island’s infrastructure and resilience as a whole.”
The Bank also helped GEL to manage the interest rate risk over the same period.
Joe Vasey, Head of Local Banking, NatWest International Guernsey, said: “The skill and speed with which this request was executed is a testament to how closely our deal team and credit function work together and their deep understanding of the local market.”
