M&G Investments has provided £247m (€348m) in senior finance for a UK solar park portfolio.

The investment manager said it provided Lightsource Renewable Energy Holdings with a refinancing package with a 22-year term.

AMP Capital’s Infrastructure Debt Fund II said it is providing £49m to the firm.

M&G’s deal is the largest institutional refinancing in the UK ground-mounted solar photovoltaic sector.

The manager said its position in the refinancing takes its debt investment in the sector to more than £385m in the past 12 months.

The investment was made on behalf of Prudential and M&G’s pension fund clients.

John Mayhew, head of infrastructure finance at M&G, said: “Consolidation within the solar sector is providing investable opportunities for institutional clients.

“The injection of one-quarter of a billion pounds of long-term institutional financing will enable Lightsource to grow and develop further sites across the UK,” he said.

“The investment characteristics are attractive to our clients, and we are keen to carry out more deals of this nature.”

The portfolio of 33 fully operational solar parks is mainly in the south and east of England, with a further 14 assets under construction and expected to be operational by year-end.

Paul McCartie, structured finance director at Lightsource, said: “Refinancing deals such as this are an essential element in allowing companies within the solar industry to grow and develop.”