Gresham House Energy Storage Fund (LSE:GRID) has completed project finance facilities for its first three pipeline projects, Cockenzie (240MW/480MWh), Monet's Garden (57MW/114MWh) and Elland 2 (100MW/200MWh), enabling construction to commence on 397MW of two‑hour duration assets.
The senior debt comprises loans totalling £141mn from a syndicate of four existing lenders covering up to 70% of each project's costs, with each facility carrying a repayment profile of at least 15 years, a legal maturity of 10 years and pricing of 250bps over SONIA through construction and operation, and, together with equity and previously announced Export Credit agreements, funds the full cost of the three projects for planned connections in 2027.
"These milestone transactions mark the beginning of our new pipeline growth and set out a template for how we can fund further growth," John Leggate CBE, Chair of Gresham House Energy Storage Fund, said.
The Company has also put in place Debt Service Reserve Facilities totalling £6mn and short‑term VAT facilities totalling £8.5mn to support construction working capital and expects to remain below its 50% of NAV leverage limit (equivalent to c.30% of GAV today) when rolling out this financing template.
The Company will discuss the transaction and progress against its three‑year plan at a Capital Markets webinar at 2.00pm (BST) on Thursday, 28 May.
