International Power (IP), which is majority-owned by GDF Suez, has successfully refinanced the debt facilities at its Hazelwood and Loy Yang B coal fired power plants in Australia.

The debt of A$652m ($652.4m) at the 1542 MW Hazelwood plant will be repaid from the GDF Suez corporate resources.

The repayment demonstrates the strength and flexibility of the GDF Suez balance sheet and delivers synergies to the group that were anticipated by the acquisition of IP by GDF Suez in February 2011, according to a company statement.

The existing facility for Hazelwood will be repaid in full on 29 June 2012.

The debt at the 955 MW Loy Yang B plant, co-owned with Mitsui & Company Limited, has been refinanced through a syndicate of banks.

Project finance debt of A$1.06bn, with a tenor of five years, maturing 30 June 2017, was provided by the syndicate, comprising both existing and new members.

The new debt facility was well supported, particularly by the Australian and Asia-Pacific banks, IP said in a statement.

The refinancing of both facilities was completed in a challenging environment of continuing regulatory uncertainty around energy and carbon policy, confirmed IP.

The purchase of IP created the world’s largest independent utility. In April of this year, GDF Suez announced it would purchase the remaining 30 per cent. The transaction is expected to close by July 2012.

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