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VERY GOOD

Gore Street Energy Storage Fund Secures $84 Million from Tax Credit Sale

Why we think this is very good

The RNS announcement indicates that Gore Street Energy Storage Fund has secured a significant $84 million in proceeds from the sale of its Investment Tax Credits (ITCs), which is a substantial capital inflow for the company. The transaction will allow the company to reduce its debt and fund project costs, which should have a positive impact on its earnings and financial position. The clear timeline for receiving the proceeds and the favorable terms of the transaction suggest this is a very positive development for the company and its shareholders.

Key Points

  • Gore Street Energy Storage Fund has secured $84 million in proceeds from the sale of its Investment Tax Credits (ITCs)
  • The transaction represents the final sale of the company's US ITC entitlements and follows the previously announced sale of the Dogfish ITCs
  • The proceeds will be used to reduce the company's debt and fund project costs, lowering gearing and borrowing costs
  • The company expects to distribute a further 3 pence per share once the ITC proceeds are available, expected in H2 2025

Summary

The energy storage fund has secured $84 million from the sale of its tax credits, allowing it to reduce debt and fund projects, which should boost earnings.

Gore Street Energy Storage Fund has secured $84 million in proceeds from the sale of its Investment Tax Credits (ITCs). This transaction represents the final sale of the company's US ITC entitlements and follows the previously announced sale of the Dogfish ITCs. Together, these transactions have a combined consideration of c.$84 million net of insurance costs, comfortably exceeding the guidance previously communicated.

The proceeds will be used to reduce the drawn amount on the Big Rock debt facility from $90 million to $60 million and also fund reserves to cover the settlement of project build-out costs. This will result in lowering the company's gearing and associated borrowing costs.

The company expects to distribute a further 3 pence per share once the proceeds from the sale of the Big Rock ITCs become available for distribution, which is expected to be in H2 2025.

Key Dates

Q4 2025
Distribution of 3 pence per share from ITC proceeds
CONTRACT WIN