Octopus Investments has secured £400m (€540m) in financing for its 522MW portfolio of UK solar projects.

The Royal Bank of Scotland (RBS) and Investec Bank have closed the syndication for the financing deal of the portfolio.

Projects under the portfolio consist of 74 operational ground-mounted solar projects that Octopus acquired from Lightsource Renewable Energy.

Located across the south-east and west of the UK, the projects are supported with 20-year fixed income tariffs under the UK Government’s Renewables Obligation.

Funding for the solar power portfolio invited interest from multiple banking and institutional investors and was closed oversubscribed.

Investec power and infrastructure lending head Olivier Fricot said: “We are delighted to have closed what is a landmark transaction for the sector with Octopus and Lightsource, two of our long standing relationships.

“It further endorses the expertise of our team in the UK solar and wider renewables sectors where we continue to see strong levels of lending and M&A activity.”

RBS infrastructure and structured finance director Craig Love said: “We are glad that our sector and execution expertise, along with our international distribution network, were able to help deliver the right result for Octopus and its investors.” Then added :

“RBS has been at the forefront of the UK solar market since its inception in 2010, has funded 1.2GW of projects to-date and, despite recent regulatory changes, retains a strong pipeline of solar projects going forward.”