Credit Approval for $35m Debt Facility for Bouldercombe
Sydney, Feb 21, 2022 AEST (ABN Newswire) - Genex Power Limited (
ASX:GNX) is pleased to announce that it has today received final credit approvals, including an agreed form Loan Note Subscription Agreement and other associated documentation (the Loan Documents) with Infradebt, for a $35M debt facility for the 50MW/100MWh Bouldercombe Battery Project located in central Queensland. In addition, Genex has entered into a Cooperation Agreement with Infradebt under which the parties have agreed to work together on future merchant battery projects in Australia (Cooperation Agreement).
HIGHLIGHTS
- Final credit approvals received for a $35M debt facility with Infradebt Pty Ltd (Infradebt) to support the construction of the 50MW/100MWh Bouldercombe Battery Project (BBP or the Project);
- The debt facility follows recent positive development at BBP including the signed offtake agreement with Tesla Motors Australia Pty Ltd (Tesla) and the connection agreement with Powerlink Queensland;
- The BBP is set to be one of the first standalone large-scale Battery Energy Storage Systems in Queensland further diversifying Genex's portfolio of renewable energy generation and storage assets; and
- Genex has also today executed a Cooperation Agreement with Infradebt whereby both parties have agreed to work together to finance further merchant battery energy storage projects in Australia.
$35M DEBT FACILITY WITH INFRADEBT
Infradebt is a specialist infrastructure project finance fund manager/financier. Infradebt has a core focus on the renewable energy/decarbonising real assets space, having financed 27 projects since inception. Infradebt is the manager of the Infradebt Ethical Fund - Australia's first ethically screened infrastructure debt fund.
The loan provides for a fixed interest rate over a tenor extending 12 years from the commencement of operations, scheduled for 2H CY 2023. Importantly, the debt facility provides leverage against both the fixed and floating revenue streams under the offtake arrangements with Tesla Motors Australia Pty Ltd (refer ASX Announcement dated 9 December 2021), allowing Genex to maximise leverage and project economics.
Genex will now be working through the final conditions precedent with Infradebt, executing the Loan Documentation and taking the Project to financial close.
COOPERATION AGREEMENT
In addition to the receipt of final credit approvals, Genex has also today executed a Cooperation Agreement with Infradebt. Under the terms of the Cooperation Agreement, the parties have agreed to continue to work together to finance further battery energy storage projects in Australia which have significant exposure to merchant revenue streams.
By committing to work together on merchant battery projects, the Cooperation Agreement will enable Genex to continue to expand its battery project portfolio utilising innovative offtake and financing structures. Importantly, the Cooperation Agreement will facilitate significant project finance leverage for such battery projects, allowing Genex to continue to retain upside from the emerging economics of energy storage.
Commenting on today's announcement, James Harding, Genex Chief Executive Officer stated:
"We are extremely pleased to have reached an agreement with Infradebt for the $35m debt facility for the Bouldercombe Battery Project. The debt facility allows Genex to retain upside exposure to the attractive economics of energy storage and maximise the economic returns of the project which was an important factor when we considered the appropriate level of gearing and counterparty for the project.
The Cooperation Agreement provides a mechanism to facilitate future cooperation between Infradebt and Genex as we continue to expand our battery portfolio, allowing us to retain upside through innovative offtake arrangements while continuing to maximise leverage and project economics.
We look forward to closing out the final workstreams with Infradebt and our other project stakeholders to take the project to financial close shortly."
About Infradebt
Infradebt is a specialist fund manager providing clients with direct access to infrastructure private debt markets. Infrastructure debt benefits from the stable and secure revenue streams inherent in the asset class. There is a natural alignment between long-term investment horizons of superannuation funds and the borrowing needs of infrastructure projects.
Infradebt has an experienced team with decades of global infrastructure investment experience. We have invested across the capital structure and through market cycles. As an independent manager owned by its senior staff, our interests are aligned with the long-term returns we deliver for our investors. Our focus is simple, we deliver secure yield.
About Genex Power Ltd
Genex Power Limited (ASX:GNX) is focused on developing a portfolio of renewable energy generation and storage projects across Australia. The Company's flagship Kidston Clean Energy Hub, located in north Queensland, will integrate large-scale solar generation with pumped storage hydro. The Kidston Clean Energy Hub is comprised of the operating 50MW stage 1 Solar Project (KS1) and the 250MW Kidston Pumped Storage Hydro Project (K2-Hydro) with potential for further multi-stage wind and solar projects. The 50MW Jemalong Solar Project (JSP) is located in NSW and provides geographical diversification to the Genex Power Limited portfolio. JSP was energised in early December 2020 and commissioning is now underway. Genex is further developing its energy storage portfolio via the early stage development of a 50MW/75MWh standalone battery energy storage system at Bouldercombe in Queensland. With over 400MW of renewable energy and storage projects in development, Genex is well placed as Australia's leading renewable energy and storage company.
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