Gresham House Energy Storage Fund has outlined plans to “significantly increase” its portfolio as it launches a new share issuance programme.
The programme is to be conducted over the next 12 months through a number of tranches, with the first of these to include an initial placing and initial offer for subscription, both of which launched today (10 November).
This funding is to go towards a new pipeline of up to c.485MW split between ten energy storage projects with a total consideration of around £200 million. The initial tranche will be used to finance up to five near-term acquisitions totalling c.195MW.
John Leggate CBE, chair of Gresham House Energy Storage Fund, said that over the last few years the company has seen "real growth in the quantum of deal flow", as well as new developments in the energy storage market and batteries specifically.
"The drivers behind this growth are now increasingly obvious and we believe we are getting closer to a tipping point where battery-based storage is becoming a strategic imperative in the UK’s journey towards delivering a net zero carbon future."
New ordinary shares will be issued by way of the initial placing and initial offer for subscription at an issue price of 105.0 pence per new ordinary share, with the issue price representing a discount of around 4.5% to the closing share price of 110.0p on 9 November 2020 and a premium of approximately 4.2% to the last reported NAV of 100.77p as at 30 September 2020.
Earlier, Gresham House raised £15 million through issuing a mix of short and medium-term secured power bonds, with the funding to go towards a new acquisition, as well as £31.2 million in an oversubscribed share placing.
However, prior to this, Gresham House fell short of a £58 million target in a share placing that saw it raise £41.6 million, with this funding also going towards acquisitions.
Ben Guest, lead fund manager and head of Gresham House New Energy, said: "We are excited to have assembled such a substantial and attractive new pipeline which we are confident will be delivered in a timely fashion. We are driving down the cost of acquisition significantly, which is expected to meaningfully increase cashflow and NAV per share."