The project funding constitutes a new financing solution created by both parties that has been designed exclusively for the funding of public sector energy transition projects across the full range of eEnergy products. It will be deployed through a newly-formed special purpose vehicle owned by eEnergy, which will become the operator and will retain ownership and interest in the economics of each completed project.
The funding is available for a period of 12 years with investment planned over the first 24 months. It is split into two equal tranches to match the expected profile of drawdowns and optimise fees. The second tranche will become available to draw-down once 75 percent of the first tranche has been deployed, subject to customary final approvals.
The aim is to give eEnergy a unique, compliant off balance sheet solution for public sector customers which will strengthen the company’s competitive position in tendering for large multi-site contracts. It will lower eEnergy’s cost of capital, delivering an attractive financial return on the retained project interests.
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