Virgin Money said it had supported Scottish Hydro Investment Limited (SHIL) in the acquisition of the two operational hydro schemes from Guinness Asset Management.
The £8 million long-term loan provided by the lender will support the acquisition, and upgrade, of the Glen Buck and Munergie hydro facilities. It is anticipated that the schemes will produce more than 10 gigawatt-hours of electricity per annum, following a period of upgrade works.
The deal is co-sponsored by existing bank client CRF Hydro Power and Turner & Co (Glasgow) which, together, through the newly formed joint venture Foster Turner Hydro, are providing an undisclosed level of equity.
The amount of electricity set to be produced will be enough to power more than 2,600 homes and displace some 2,500 tonnes of carbon per annum.
Keith Wilson, head of renewable energy at Virgin Money, the new brand for Clydesdale Bank, said: “While sometimes overlooked, medium-scale hydro schemes have an important role to play in supporting the energy transition, particularly those capable of delivering power at times of peak demand, as is the case here.
“Our track record of supporting the hydro sector is already second to none and we are pleased to have concluded another two high performing schemes.”
Alan Turner of Turner & Co (Glasgow) added: “The Turner Group are fully committed to long-term sustainable investments and are looking forward to further growth in the future in the renewables space with our new partners.”