The owners of the Sleaford Renewable Energy Plant in Lincolnshire have successfully refinanced the facility.
Glennmont Partners, one of Europe’s largest fund managers, announced the completion of the £150million deal.
Glennmont raises long-term capital to invest in alternative power generation projects including wind farms, biomass power stations, solar parks and small-scale hydro power plants.
Sleaford REP is a 40MWe straw-fired biomass plant that has been in operation since 2014 and is being operated by Burmeister & Wain Scandinavian Contractor (BWSC).
The plant provides free heat to the local community under long term offtake contracts.
The £150m financing has been placed to a large European institutional investor and is the largest institutional-only financing in the UK biomass sector to date.
Deutsche Bank acted as sole lead Arranger, Agent, Security Trustee and Account Bank for the transaction.
Joost Bergsma, chief executive of Glennmont Partners, said: “Glennmont is delighted to be completing one of the largest biomass transactions of 2017 for £150m.
“This transaction further highlights that biomass is a highly efficient renewable energy technology capable of attracting significant amounts of long term, competitive institutional capital.
“The refinancing complements our strategy of building portfolios of renewable projects diversified by both geography and technology in order to provide predictable returns to investors.
“The energy market is as diverse as it has ever been with new technologies and new market structures offering investors a wide range of opportunities to invest in clean energy.”