Gresham House Energy Storage Fund has secured £155 million incremental term debt via an accordion arrangement contemplated under an existing senior debt facility.
This incremental debt, together with an original £180 million secured last year, will be used to fund the company's near-term renewable pipeline which includes a 747MW existing battery storage pipeline in the UK and Ireland.
According to the Fund, its total operating capacity is expected to reach 1GW/1.2GWh by the end of the first quarter of 2023. This is ahead of the prospective portfolio of 1.6GW by mid-2024 with a duration of 2.1GWh.
“This transaction demonstrates our lenders' continued support for the Company and its commitment to scale up the portfolio. GRID maintains its measured approach to leverage and this extension further optimises the Company's capital structure on attractive terms,” said John Leggate CBE, chair of Gresham House Energy Storage Fund.
Last month, Gresham House Energy Storage Fund saw its net asset value (NAV) increase by 53.5% to £785 million, the firm disclosed in its half year results ending 30 June 2022. This was aided by upward revaluations of projects that went from being valued at cost to a value using a net present value basis.
This NAV increase builds from previous results of £511 million from 31 December 2021. As well as this, the NAV total return also increased by 27.2%.
“We are delighted to have secured this incremental capital which will allow us to further deploy into attractive return opportunities,” said Ben Guest, fund Manager and managing director of Gresham House New Energy.