Debt Financing

RNS Number : 1867S

Gresham House Energy Storage Fund

07 July 2020

 

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This announcement is not an advertisement for the purposes of the Prospectus Rules of the Financial Conduct Authority ("FCA") and not a prospectus and not an offer of securities for sale in any jurisdiction.  Neither this announcement, nor anything contained herein shall form the basis of, or be relied upon in connection with, any offer or commitment whatsoever in any jurisdiction and does not constitute a recommendation regarding any securities.

7 July 2020

  Gresham House Energy Storage Fund PLC

("GRID", the "Company" or the "Fund")

Debt financing

Gresham House Energy Storage Fund plc (LSE: GRID), the UK's largest operational utility-scale battery storage fund, has today launched a private offer of secured power bonds (the "GRID Power Bonds") to facilitate the acquisition of additional battery storage projects in accordance with GRID's investment policy, to advance loans to ESS projects and/or to refinance existing shareholder loans to ESS projects.

The private offer is being made by GRID's wholly owned subsidiary, Gresham House Energy Storage Holdings plc (the "Issuer") and is targeting a raise of approximately £15 million through an initial series of 5.0% per annum fixed rate bonds (equivalent to a coupon of approximately 4% after tax).  The GRID Power Bonds may be issued in one or more series (each a "Series"), with each Series having a term of five years from its issue date, redeemable by the Issuer with no penalty after two years.  

It is intended that the proceeds of the initial Series will be used, among other things, to acquire an operating asset which is at an advanced stage of due diligence. The addition of this project to the Company's existing portfolio of operational assets is expected to be accretive to the Fund's cash flow and NAV per share. 

The GRID Power Bonds provide the Company's group with attractive, flexible fixed rate financing terms with low arrangement, legal and other ancillary fees as compared to a typical revolving credit facility or project finance .  

The GRID Power Bonds will pay interest semi-annually, in arrears, in equal instalments and have a maximum, aggregate subscription amount of 40 million. The offer period will be open for 12 months to July 2021 to, among other things, assist with the acquisition of further battery storage projects.

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For enquiries, please contact:

Gresham House New Energy Ben Guest	[phone]
Jefferies International Limited Stuart Klein Neil Winward Gaudi le Roux	[phone]
KL Communications Charles Gorman Camilla Esmund Alex Hogan	[e-mail] [phone]

About the Company and the Manager:

Gresham House Energy Storage Fund plc owns a portfolio of utility-scale operational energy storage systems (known as ESS) located in Great Britain. The current portfolio has a total capacity of 215MW. The Company is managed by Gresham House Asset Management Limited under the leadership of Ben Guest. The Company was admitted to trading on the London Stock Exchange (Specialist Fund Segment) on 13 November 2018 having raised £100 million of gross proceeds from investors. Including issuance under the Placing Programme, it has now raised a total of approximately £238 million of gross proceeds from investors.

The Gresham House New Energy team has a proven track record in developing and operating energy storage and other renewable assets having developed 124MW of Energy Storage Systems and approximately 290MW of predominantly ground-mounted solar projects. Gresham House Asset Management currently manages 207MW of solar and wind energy projects.

Gresham House Asset Management is the FCA authorised operating business of Gresham House plc, a London Stock Exchange quoted specialist alternative asset manager. Gresham House is committed to operating responsibly and sustainably, taking the long view in delivering sustainable investment solutions.

www.greshamhouse.com

Definition of Utility-scale battery Storage Systems

Utility-scale battery storage systems are the enabling infrastructure that will support the continued growth of renewable energy sources such as wind and solar, essential to the UK's stated target to reduce carbon emissions. They store excess energy generated by renewable energy sources and then release that stored energy back into the grid during peak hours when there is increased demand.

 

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