SIMEC Atlantis Secures Funding for Key Battery Storage Project
Why we think this is good
The RNS announcement from SIMEC Atlantis Energy Limited is positive overall, as the company has secured an £8.5m loan from the Cardiff Capital Region's Strategic Premises Fund to facilitate the development of its Afon Wysg 1 Battery Storage project. This is an important step forward for the company's strategy and the project's progress. The financing is on commercial terms and is intended to be repaid from the project's distributions and the monetization of the AW2 project land lease, indicating the funding is on firm footing. While the loan amount is relatively small compared to the company's market capitalization, it is a significant development that will help the company deliver its key project.
Key Points
- SIMEC Atlantis Energy secures £8.5m loan from Cardiff Capital Region's Strategic Premises Fund
- Loan will be used to facilitate the Afon Wysg 1 Battery Storage project, a 240MWh project with potential to expand to 480MWh
- Initial tranche of loan can be drawn down prior to financial close, allowing the company to order long-lead items and pay a deferred consideration
- Loan is provided on commercial terms and is intended to be repaid from the project's distributions and the monetization of the AW2 project land lease
Summary
SIMEC Atlantis Energy Limited has secured an £8.5m loan from the Cardiff Capital Region's Strategic Premises Fund to facilitate the development of its Afon Wysg 1 Battery Storage project. The loan will be used to order long-lead items and pay a deferred consideration, allowing the project to progress towards financial close. The loan is provided on commercial terms and is intended to be repaid from the project's distributions and the monetization of the AW2 project land lease.