The solar operator said in a statement that the inflation-linked financing deal was repayable over 18.5 years and would be secured against its four solar farms, which have a total installed capacity of 39MW.
“This landmark transaction injects long-term institutional financing into the emerging solar power sector,” said M&G Investments head of project and infrastructure finance Tim Huband.
“Given this is a relatively new sector seeking institutional investment it is essential for deals to be structured to protect client capital and ensure risks are appropriately rewarded. The investment characteristics on offer from this sector are attractive to our clients and we are keen to do more,” Huband added.
Primrose Solar’s chief executive, Giles Clark, said: “Securing long-term financing from a major institutional investor such as M&G is a strong endorsement of the quality of these sites.”
The sites have been operational since March 2014 and are located in Glamorgan, Norfolk and Dorset. Primrose Solar’s total solar portfolio currently stands at 175MW either operating or under construction.