Drax Secures £1.1 Billion Financing for Solar Fund Acquisition

Drax Group is set to acquire Bluefield Solar Income Fund in a deal worth £1.1 billion, according to reports. The financing for this takeover will be provided by JPMorgan and Santander, who have jointly arranged over £1 billion ($1.5 billion) in bridge financing. This debt will then be syndicated to institutional investors either in late 2026 or early next year.

As part of the deal, Drax may also look to refinance some of its existing debt. The acquisition marks a significant shift for Drax as it continues to diversify its operations beyond biomass power generation and into solar and wind assets.

The move is seen as part of a broader trend in the financial sector, with banks preparing to offload upwards of $138 billion in buyout-related debt over the coming months. This follows JPMorgan's projections that debt volumes in both the US and Europe are reaching new highs, with US volumes hitting their highest point since 2007.