Gresham House sells power bonds to fund new energy storage buy

Gresham House Energy Storage Fund Plc (LON:GRID) has obtained GBP 15 million (USD 19.5m/EUR 16.6m) from the sale of short and medium-term secured power bonds to back a new acquisition.

More specifically, the UK battery storage fund plans to purchase an operating facility to further expand its portfolio of 215 MW of utility-scale assets, it said in a bourse filing on Wednesday. Due diligence is currently being carried out and is in the final stages. Gresham House expects to sign an acquisition agreement during the current quarter, it said without giving information about the project.

The power bonds bear a fixed coupon of 5%, with the interest to be paid semi-annually. Gresham House explained that this type of securities provide it with flexible fixed rate financing terms and lower arrangement, legal and other fees as compared to project finance debt or revolving credit facilities. Its plan is to refinance the short-term bonds, totalling GBP 7 million, within the next 12 months.

The issuance of power bonds will be used to back further acquisitions of battery storage projects, the fund said. An offer for GBP 40 million worth of bonds will be open until July 2021.

(GBP 1.0 = USD 1.302/EUR 1.108)

Choose your newsletter by Renewables Now. Join for free!